Classifying Costs in a Service CompanyA 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.CostsClassificationa. Cost to lease (rent) railroad cars b. Cost of track and bed (ballast) replacement c. Diesel fuel costs d. Cost to lease (rent) train locomotives e. Depreciation of terminal facilities f. Maintenance costs of right-of-way, bridges, and buildings g. Salaries of dispatching and communications personnel h. Headquarters information technology support staff salaries i. Safety training costs j. Wages of train engineers k. Wages of switch and classification yard personnel l. Costs of accident cleanup

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Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 7E: Classifying costs In a service company A partial list of the costs for Wisconsin and Minnesota...

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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.

Costs	Classification
a. Cost to lease (rent) railroad cars
b. Cost of track and bed (ballast) replacement
c. Diesel fuel costs
d. Cost to lease (rent) train locomotives
e. Depreciation of terminal facilities
f. Maintenance costs of right-of-way, bridges, and buildings
g. Salaries of dispatching and communications personnel
h. Headquarters information technology support staff salaries
i. Safety training costs
j. Wages of train engineers
k. Wages of switch and classification yard personnel
l. Costs of accident cleanup

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