1. Union Pacific
... That means in a sense that this was also a kind of activity based cost system with its own set of cost drivers such as power unit miles, serviceable locomotive car days etc. The results appear in the form such as Diesel fuel cost per serviceable locomotive day. A number that is totally arbitrary ... the activity of the particular car. (My statements about depreciation are based on the assumption that Union Pacific does not depreciate its cars based on miles traveled which is mentioned nowhere in the case but rather using the simple straight-line depreciation method.) A further weakness o...
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