The word funicular comes from the Latin word for cord or rope, so I'm sure the original meaning was rail cars pulled by cables. Human nature being what it is, the meaning of the word could certainly have expanded to include cog-wheel railways. Funiculars don't work well for long distances or around curves, so a cog-wheel railway would be more likely on a mountain. It's worth a trip to Pittsburgh or Salzburg to ride a real funicular, though.
-Joe Offer-