Cost Categories
The costs output by the OSCAR model are classified into four categories:
- direct variable costs: costs that fluctuate with the operations of the railway. such costs would include fuel, train crew, traffic cost, yard & terminal cost, rolling stock and infrastructure maintenance.
- variable operating costs: include the direct variable costs with depreciation attributed to the shipment (freight or passengers).
- total long term variable costs – include the variable operating costs and the cost of capital, or borrowing costs.
- total costs: include the long term variable costs plus fixed costs and profit.
Read more about this topic: OSCAR Railway Costing
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