5 (1) For the purposes of the calculation of actual loss under sections 252 to 258 and 260 and 261 of the Act, costs in relation to a branch line or in relation to a passenger-train service shall, subject to subsections (2) to (5), be based on expense accounts maintained under the Uniform Classification of Accounts and accounts reconcilable therewith or on such special studies of items and factors of costs as the Committee may order pursuant to section 46 of the National Transportation Act.
(2) In computing the costs of a company for the purposes of section 256, 258 or 261, there shall be included an allowance for depreciation on a periodic basis
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(b) at rates approved under the Uniform Classification of Accounts applied to the book value of such other depreciable assets and of such new assets as the Committee is satisfied are required for continued operation of the line or service.
(3) In computing the costs of a company for the purposes of section 256, 258 or 261, there shall be included in the costs, for the last year of operation prior to abandonment of a line or discontinuance of a service that had previously been ordered retained, an allowance for depreciation on such new assets as the Committee is satisfied are required to comply with the order for retention, which allowance for depreciation shall be equal to the undepreciated cost of such new assets calculated by deducting from the actual cost of the assets their salvage value and the accumulated depreciation allowed on them for subsidy purposes in previous years.
(4) In computing costs of a company for the purposes of section 253 or 260, there shall be included an allowance for cost of capital as follows:
(a) either
(ii) the rate of return on capital, including an allowance for income tax, that, in the opinion of the Committee, is appropriate for the company at the time the application is made, applied to the net book investment of the road property that the company proposes to retire if the line is abandoned or the service discontinued, on condition that the company can develop depreciation charges and net investment calculations acceptable to the Committee as reflecting the specific aging characteristics of the road property; and
(5) In computing the costs of a company for the purposes of section 256, 258 or 261, there shall be included an allowance for cost of capital as follows:
11 Cost submissions to the Committee by railways other than Class I railways shall be made as follows:
(c) cost submissions shall be in the same form as those prescribed for Class I railways and shall be supported by a complete description of the methods and procedures used in determining output units and in assigning and allocating costs; and
(d) cost submissions shall include an allowance for cost of capital as follows:
(i) where the railway companies have developed a capital structure satisfactory to the Committee, at an approved cost of capital rate developed in the same manner as prescribed for Class I railways in these Regulations, or
12 Applications for abandonment of any line of railway under section 106 of the Act shall be accompanied by a statement of costs and revenues, showing the actual loss incurred in the operation of the line of railway, prepared in the same manner as these Regulations require for the purposes of actual loss calculations under section 253 of the Act, unless the Committee directs otherwise pursuant to section 46 of the National Transportation Act.
9 Cost submissions made pursuant to these Regulations shall be prepared in accordance with such costing manuals as the Committee shall, by order, require.
7 For the purposes of sections 264, 272, and 276 to 278 or for other purposes pertaining to rates for the carriage of goods,
(a) costs shall be variable costs based either on the expense accounts maintained under the Uniform Classification of Accounts and accounts reconcilable therewith or on such special studies of items and factors of costs as the Committee orders pursuant to section 46 of the National Transportation Act, and shall include the increases or decreases in rail operations expenses resulting from changes in the volume of traffic, after allowing a reasonable period of time for adjustment in view of the traffic to be handled;
