(a) Certain instructions for separating common expense accounts (dependent accounts) between freight and passenger services base the allocation on the proportional freight/passenger separation of other common expense accounts (independent accounts). The dependent account is frequently identified by an ``XX'' symbol in the natural expense position (first two digits) with corresponding independent accounts also identified by the ``XX'' natural expense symbol. Unless otherwise stated, the applicable natural expense associated with ``XX'' symbol shall be the same for both the dependent and independent accounts.
(b) To illustrate, Sec. 1242.10 provides instructions for separating common Way and Structures, Administration--Track accounts (dependent accounts) designated by XX-19-02. The separation is based on certain other common Way and Structures accounts including Roadway--Running, XX-17-10, and Roadway--Switching, XX-18-10.
(c) As Sec. 1242.05 states, the ``XX'' symbol denotes the following natural expenses for Way and Structures administration functions: 11--Salaries and wages,21--Materials, tools, supplies, fuels, and lubricants,41--Other purchased services, and61--General. These natural expenses shall be individually applied to the separation rules in Sec. 1242.10. In each case, the independent accounts providing the basis for freight/passenger separation of the dependent account shall have the same natural expense designation. For example, the basis of separating account 11-19-02, Salaries and Wages, Way and Structures, Administration--Track, would be based on certain independent accounts including 11-17/18-10, Salaries and Wages, Way and Structures, Running/Switching, Repair and Maintenance, Roadway.
Operating Expenses--Way and Structures