| Model RR Cost Accounting |
Cost accounting is one of the complex and creative areas of accounting. For example: Creative cost accounting can be used to make management look good and to limit taxes. In the case of the Rock County management environment all managers will work with the same system so we will not be spending time on accounting games like the prototype would so accounting geeks will be disappointed (sorry).
In a real accounting system and a model on it is all about how much detail you want to deal with in the results. Because executive management is normally looking at the big picture I have rolled up a lot of the cost areas so we do not get lost in detail.
Operating cost is based on fixed cost (cost that occurs every month that is not based on the amount of business) and variable cost (cost that occurs based on the cost of activity for the month). See Fixed Cost and Variable Cost below for what is contained in them.
In many cases I have prototype information on costs so I can use prototype values for the most part. Because I do not want to scrap my classes of locomotives or cars that are expensive to run compared to the best choice some of the figures are adjusted usually in the area of purchase price.
All operating positions would have their wages paid
into an their account according to their pay contract for each session they worked as crew. The money
would allow them to spend it on starting their own railroad business
when they got to where they could afford to buy a locomotive and bid
on some contracts if they wanted to do that.
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