Question

A partial list of the costs for Wisconsin and Minnesota Railroad, a short hauler of freight, is provided below. Classify each cost as either indirect or direct. For purposes of classifying each cost, use the train as the cost object.
a. Cost to lease (rent) train locomotives
b. Salaries of dispatching and communications personnel
c. Costs of accident cleanup
d. Wages of switch and classification yard personnel
e. Cost of track and bed (ballast) replacement
f. Wages of train engineers
g. Payroll clerk salaries
h. Safety training costs
i. Fuel costs
j. Maintenance costs of right of way, bridges, and buildings
k. Cost to lease (rent) railroad cars
l. Depreciation of terminal facilities



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  • CreatedJune 27, 2014
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