Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Textbook Question
Chapter 1, Problem 7E
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
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Students have asked these similar questions
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
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. 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 communications personnelh. Headquarters information technology support staff salariesi. Safety training costsj. Wages of train engineersk. Wages of switch and classification yard personnell. Costs of accident cleanup
Classify each Direct or indirect cost
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
I. Costs of accident cleanup
Chapter 1 Solutions
Managerial Accounting
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - What manufacturing cost term is used to describe...Ch. 1 - Distinguish between prime costs and conversion...Ch. 1 - What is the difference between a product cost and...Ch. 1 - Name the three inventory accounts for a...Ch. 1 - In what order should the three inventories of a...Ch. 1 - What are the three categories of manufacturing...Ch. 1 - How do the manufacturing costs incurred during a...Ch. 1 - How does the Cost of goods sold section of the...
Ch. 1 - Management process Three phases of the management...Ch. 1 - Prob. 2BECh. 1 - Prime and conversion costs Identify the following...Ch. 1 - Product and period costs Identify the following...Ch. 1 - Cost of goods sold, cost of goods manufactured...Ch. 1 - Jakes Cabins is a small motel chain with locations...Ch. 1 - Indicate whether each of the following costs of an...Ch. 1 - Indicate whether the following costs of Procter ...Ch. 1 - Prob. 3ECh. 1 - For apparel manufacturer Abercrombie Fitch, Inc....Ch. 1 - From the choices presented in parentheses, choose...Ch. 1 - Prob. 6ECh. 1 - Classifying costs In a service company A partial...Ch. 1 - Classifying costs The following is a manufacturing...Ch. 1 - Financial statements of a manufacturing firm The...Ch. 1 - Manufacturing company balance sheet Partial...Ch. 1 - Cost of direct materials used in production for a...Ch. 1 - Prob. 12ECh. 1 - Cost of goods manufactured for a manufacturing...Ch. 1 - Income statement for a manufacturing company Two...Ch. 1 - Statement of cost of goods manufactured for a...Ch. 1 - Cost of goods sold, profit margin, and net income...Ch. 1 - Cost flow relationships The following information...Ch. 1 - The following is a list of costs that were...Ch. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of Foothills Medical Centers costs...Ch. 1 - Manufacturing income statement, statement of cost...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Prob. 1PBCh. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of The Grand Hotels costs follows:...Ch. 1 - Several items are omitted from the income...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Comfort Plus, Inc., has a hotel with 300 rooms in...Ch. 1 - Prob. 2MADCh. 1 - Comparing occupancy for two hotels Sunrise Suites...Ch. 1 - Prob. 4MADCh. 1 - Prob. 5MADCh. 1 - Prob. 1TIFCh. 1 - Communication Todd Johnson is the Vice President...Ch. 1 - For each of the following managers, describe how...Ch. 1 - The following situations describe scenarios that...Ch. 1 - Geek Chic Company provides computer repair...Ch. 1 - Which of the following items would not be...Ch. 1 - Prob. 2CMACh. 1 - A firm has 100,000 in direct materials costs,...Ch. 1 - In practice, items such as wood screws and glue...
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