A partial list of the costs for Wisconsin and MinnesotaRailroad, a short hauler of...

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Accounting

A partial list of the costs for Wisconsin and MinnesotaRailroad, a short hauler of freight, follows. Classify each cost aseither 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 communicationspersonnel
h. Headquarters information technology supportstaff salaries
i. Safety training costs
j. Wages of train engineers
k. Wages of switch and classification yardpersonnel
l. Costs of accident cleanup

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SolutionMeaning of Direct Cost Direct cost iscompletely atributed to the production of specific goods orservices It is directly related to the service or product Itincludes Materials Labour and other expenses which are See Answer

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In: AccountingA partial list of the costs for Wisconsin and MinnesotaRailroad, a short hauler of freight,...A partial list of the costs for Wisconsin and MinnesotaRailroad, a short hauler of freight, follows. Classify each cost aseither indirect or direct. For purposes of classifying each cost,use the train as the cost object.CostsClassificationa. Cost to lease (rent) railroad carsb. Cost of track and bed (ballast)replacementc. Diesel fuel costsd. Cost to lease (rent) train locomotivese. Depreciation of terminal facilitiesf. Maintenance costs of right of way, bridges,and buildingsg. Salaries of dispatching and communicationspersonnelh. Headquarters information technology supportstaff salariesi. Safety training costsj. Wages of train engineersk. Wages of switch and classification yardpersonnell. Costs of accident cleanup

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 communicationspersonnel
h. Headquarters information technology supportstaff salaries
i. Safety training costs
j. Wages of train engineers
k. Wages of switch and classification yardpersonnel
l. Costs of accident cleanup