Classifying costs In a service company A partial list of the costs for Wisconsin and Minnesota Railroad, a short hauler of freight, follows. Classify each cost as either indirect or direct. For purposes of classifying each cost, use the train as the cost object. a. Costs of accident cleanup b. Cost to lease (rent) locomotives and railroad cars c. Cost of track and bed (ballast) replacement d. Depredation of terminal facilities e. Diesel fuel costs f. Information technology support staff salaries g. Insurance costs h. Maintenance costs of right of way, bridges, and buildings i. Safety training costs j. Salaries of dispatching and communications personnel k. Wages of switch and classification yard personnel l. Wages of train engineers

BuyFind

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663
BuyFind

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663

Solutions

Chapter
Section
Chapter 15, Problem 7E
Textbook Problem

Classifying costs In a service company

A partial list of the costs for Wisconsin and Minnesota Railroad, a short hauler of freight, follows.

Classify each cost as either indirect or direct. For purposes of classifying each cost, use the train as the cost object.

  1. a. Costs of accident cleanup
  2. b. Cost to lease (rent) locomotives and railroad cars
  3. c. Cost of track and bed (ballast) replacement
  4. d. Depredation of terminal facilities
  5. e. Diesel fuel costs
  6. f. Information technology support staff salaries
  7. g. Insurance costs
  8. h. Maintenance costs of right of way, bridges, and buildings
  9. i. Safety training costs
  10. j. Salaries of dispatching and communications personnel
  11. k. Wages of switch and classification yard personnel
  12. l. Wages of train engineers

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Chapter 15 Solutions

Financial And Managerial Accounting
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