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Business, 03.09.2021 23:00 fespinoza019

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
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 and personnel.
l. Costs of accident cleanup.

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