Job Costing in Workshops - WMS - Bilingual

 

Job costing in Workshops

• Source: 6th chapter of I.R. Rolling stock code

 

• Costing in Railway context : 

• Process of classifying, recording and ensuring appropriate allocation of expenditure;

• So as to accurately arrive at the cost of final product or service of a Workshop/Production Unit. 

 

• It (costing of each activity) helps the workshop to measure its efficiency and improve it.

• Also helps the viability of a product or service before decides to go for producing or buying the same.  (Make or Buy Decision)

• ERP (Enterprise Resource Planning) system helps in this effect. 

• Types of costing systems.  

1. Process costing  -  Foundry accounts  

2. Job costing  - Shop manufactured items

3. Batch costing - Rolling stock production  (Production Units)

4. Revised costing  - Unit Repair Cost (URC) of POH of Rolling Stock 

Job Costing:

• Manufacture of spare parts required for POH. (for internal consumption, that is captive consumption)

• Standard costing technique applied. 

• The expenditures are collected element-wise under the respective work orders

• The actual cost so arrived - compared with the standard cost 

• On completion of ordered quantity the Final Completion Advice (FCA) is sent to Costing section for generation of Cost sheet and arriving at unit rate of manufacture item wise.

Features of Job Costing:

1. Allowed time is set for manufacture of each item

2. Standard quantity of raw material to be drawn with the specification 

3. The unit cost of manufacture is arrived from cost sheet for the particular work order wherein, all elements of cost are charged to that work order

4. Unit Cost = Total cost /Quantity    - for that work order 

5. Such Actual Unit cost is compared with the Standard unit cost

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कार्यशालाओं में कार्य लागत निर्धारण

• स्रोत: आयकर अधिनियम (रोलिंग स्टॉक कोड) का छठा अध्याय

 

• रेलवे के संदर्भ में लागत निर्धारण:

• व्यय का वर्गीकरण, अभिलेखन और उचित आवंटन सुनिश्चित करने की प्रक्रिया;

• ताकि किसी कार्यशाला/उत्पादन इकाई के अंतिम उत्पाद या सेवा की लागत का सटीक आकलन किया जा सके।

 

• इससे (प्रत्येक गतिविधि की लागत का आकलन करने से) कार्यशाला को अपनी दक्षता मापने और उसमें सुधार करने में मदद मिलती है।

• इससे किसी उत्पाद या सेवा के उत्पादन या खरीद का निर्णय लेने से पहले उसकी व्यवहार्यता का पता लगाने में भी मदद मिलती है। (उत्पादन या खरीद का निर्णय)

• ईआरपी (एंटरप्राइज रिसोर्स प्लानिंग) सिस्टम इसमें सहायक होता है।

• लागत निर्धारण प्रणालियों के प्रकार।

5. प्रक्रिया लागत - फाउंड्री खाते

6. कार्य लागत निर्धारण - कारखाने में निर्मित वस्तुएँ

7. बैच कॉस्टिंग - रोलिंग स्टॉक उत्पादन (उत्पादन इकाइयाँ)

8. संशोधित लागत निर्धारण - रोलिंग स्टॉक के पीओएच की इकाई मरम्मत लागत (यूआरसी)

कार्य लागत निर्धारण:

• पीओएच के लिए आवश्यक अतिरिक्त पुर्जों का निर्माण। (आंतरिक उपयोग के लिए, अर्थात् कंपनी के स्वामित्व में उपयोग के लिए)

• मानक लागत निर्धारण तकनीक लागू की गई।

• व्यय एकत्र किए जाते हैंतत्व-वारसंबंधित कार्य आदेशों के अंतर्गत

• इस प्रकार प्राप्त वास्तविक लागत - मानक लागत की तुलना में

• ऑर्डर की गई मात्रा पूरी होने पर, अंतिम समापन सलाह (एफसीए) को लागत पत्रक तैयार करने और वस्तुवार उत्पादन की इकाई दर निर्धारित करने के लिए लागत निर्धारण अनुभाग को भेजा जाता है।

जॉब कॉस्टिंग की विशेषताएं:

6. प्रत्येक वस्तु के निर्माण के लिए निर्धारित समय सीमा तय की गई है।

7. विनिर्देशों के अनुसार निकाली जाने वाली कच्चे माल की मानक मात्रा।

8. उत्पादन की इकाई लागत, विशिष्ट कार्य आदेश के लागत पत्रक से निकाली जाती है, जिसमें लागत के सभी तत्व उस कार्य आदेश पर प्रभारित होते हैं।

9. इकाई लागत = कुल लागत / उस कार्य आदेश के लिए मात्रा

10. इस प्रकार की वास्तविक इकाई लागत की तुलना मानक इकाई लागत से की जाती है।

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GK for LDCE - General Knowledge - All in One

 

Link - GK for LDCE course

GK for LDCE - All in One

Prepare smarter for General Knowledge (GK) in LDCE with a focused 44-Day Preparation Programme — at just ₹44.

The course provides exam-focused, high-yield GK covering important topics and facts relevant to Railway departmental examinations.

Stay updated throughout the course with regular updates, current GK and new content additions, specially selected from the examination point of view.

A special focus is given to GK MCQs from Previous LDCE Question Papers, helping you understand the pattern and revise frequently asked areas.

44 Days • ₹44 • Focused GK • Previous LDCE MCQs • Regular Updates

Appendix3 Academy

7671012698

WTR - Wagon Turn Around with Practical example

WTR - WAGON TURN ROUND

M Nageswara Rao 9492432160

• Definition:  The interval of time between two successive loadings of a wagon is called Wagon Turn Round.  

• Wagon Turn Round performance is denoted in terms of "Days".

• If the No. of Wagon Turn Round days is reduced, the performance considered to be more  or vice versa.

• In simple terms, "calculated from the time a wagon is placed for loading till the time it again becomes available for reloading", is the actual wagon turn-round.

• Thus, all detentions to a wagon, from the time it is placed for loading till it is again placed for reloading after passing through the cycle of loading, dispatch, transit, unloading and again made available for reloading, enter into the calculation of turn-round.

• Means wagon turn round is 11 days means, the wagon could be loaded around 32 times a year. (360 days/11 days). 

Year	1950-51	2000-01	2005-06	2021-22
WTR	11  days	7.5 days	6.08 days	4.74  days

• This (Reduction of Wagon Turn Round days) has been achieved as a result of 

•  Improved mobility of wagons.

• Quick loading & unloading of wagons.

•  Reduction in detentions. 

•  And improvement in speed of goods trains.
  
  

Formulae for WTR - Wagon Turn Round  = WB/(L+R)   

• WB is Wagon Balance (effective average),  L is Daily average number of wagons Loaded, R is Daily average number of wagons Received.

Practical example of WTR:

Calculate Wagon Turn Round from the following data:

• Daily Average Wagon balance: 15500

• Average daily non effective wagons  A) Sick - 200 B) Departmental -300

• Average daily loading – 800  (L)

• Average daily received – 700 ( R )

Answer:

• Effective average wagon balance daily = Wagon balance minus Sick & Dept

• = 15500 - (200+300)

• = 15000

• WTR = WB/(L+R)   

• WTR= 15000/(800+700)

• WTR= 10 days 

• Wagon is the bread earning horse of the Railways, load it adequately. Make it run and don’t stabilize it. 

Key Takeaways for MCQ:  

• Expressed in terms of “Days” 

• WTR = WB/(L+R) 

• WTR stands for Wagon Turn Round 

• WB stands for Wagon Balance 

• L stands for Average Daily Loading 

• R stands for Average Daily Receiving 

• More efficient, if WTR is less or vice versa 

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Strategic Lines - Defence

 

Railways - Strategic Lines

For accounting purposes, Indian Railway lines are classified as:

1. Commercial Lines

2. Strategic Lines

Commercial Lines: Commercial Lines are constructed and operated mainly for normal passenger and freight traffic and serve the economic and civilian needs of the country.

Strategic Lines: Strategic Lines are railway lines regarded as important for national defence and military requirements, particularly in border or other strategically important areas.

The word strategic means relating to the achievement of an overall or long-term military advantage.

4 Zonal Railways having Strategic Lines: 

1. Northern Railway (NR) 

2. Northeast Frontier Railway (NFR) 

3. North Western Railway (NWR) 

4. Western Railway (WR)

Memory Tip: North, Northeast, Northwest and West

A railway line is treated as strategic based on national-defence requirements identified in consultation with the Ministry of Defence and approved by the competent authority of the Government. For major strategic railway projects, approval may involve the Central Government or the Cabinet Committee on Security.

Examination Points

• Strategic Lines are maintained separately from Commercial Lines for accounting purposes.

• Separate expenditure statements and accounts are prepared for Strategic Lines.

• Indian Railways reported a loss of ₹2,812.59 crore from operating Strategic Lines during 2024–25.  (as per IR Year Book 2024-25)

• Strategic Lines may also carry ordinary passenger and freight traffic; their strategic classification is based on defence importance, not exclusive military use.

Engineering Code Chapter 18 - Miscellaneous Works - Works required for Defence Purposes - deals with the Strategic Lines. 

• Defence works: Divided between Railway Estimates & Defence Estimates.

• Railway Estimates bears:

• The entire expenditure of Defence Works carried out on the Strategic line will be borne by the Railways.

• Defence Estimates bears: 

• . The cost of construction of troop sidings, platforms etc., including the signaling arrangements required in the event of the siding or platform taking off from the main line beyond the limits of station yard.

•  The cost of land acquired for troop sidings, platforms, etc., if the railway Administration does not choose to acquire it for its own purpose;

•  The interest and maintenance charges on Railway's share of the cost in respect of Defence works executed by Railways on behalf of Defence services. 

                Major Heads between Commercial Lines & Strategic Lines 

• 

रेलवे - वाणिज्यिक और रणनीतिक लाइनें

लेखांकन उद्देश्यों के लिए, भारतीय रेलवे लाइनों को इस प्रकार वर्गीकृत किया गया है:

3. वाणिज्यिक लाइनें

4. रणनीतिक रेखाएँ

वाणिज्यिक लाइनें: वाणिज्यिक लाइनें मुख्य रूप से सामान्य यात्री और माल ढुलाई के लिए बनाई और संचालित की जाती हैं और देश की आर्थिक और नागरिक आवश्यकताओं की पूर्ति करती हैं।

रणनीतिक दिशाएँ: सामरिक लाइनें वे रेलवे लाइनें हैं जिन्हें राष्ट्रीय रक्षा और सैन्य आवश्यकताओं के लिए महत्वपूर्ण माना जाता है, विशेष रूप से सीमावर्ती या अन्य रणनीतिक रूप से महत्वपूर्ण क्षेत्रों में।

शब्दरणनीतिकइसका अर्थ है समग्र या दीर्घकालिक सैन्य लाभ की प्राप्ति से संबंधित।

4रणनीतिक लाइनों वाली क्षेत्रीय रेलवे:

5. उत्तरी रेलवे (एनआर)

6. एनउत्तर-पूर्वी सीमांत रेलवे (एनएफआर)

7. उत्तर पश्चिमी रेलवे (एनडब्ल्यूआर)

8. पश्चिमी रेलवे (डब्ल्यूआर)

याद रखने का तरीका: उत्तर, उत्तरपूर्व, उत्तरपश्चिम और पश्चिम

किसी रेलवे लाइन को राष्ट्रीय रक्षा संबंधी आवश्यकताओं के आधार पर रणनीतिक माना जाता है, जिनकी पहचान रक्षा मंत्रालय के परामर्श से की जाती है और सरकार के सक्षम प्राधिकारी द्वारा अनुमोदित की जाती है।प्रमुख रणनीतिक रेलवे परियोजनाओं के लिए, अनुमोदन में केंद्र सरकार या कैबिनेट कमेटी ऑन सिक्योरिटी की भागीदारी शामिल हो सकती है।

परीक्षा अंक

• लेखांकन उद्देश्यों के लिए रणनीतिक लाइनों को वाणिज्यिक लाइनों से अलग रखा जाता है।

• रणनीतिक मदों के लिए अलग-अलग व्यय विवरण और खाते तैयार किए जाते हैं।

• भारतीय रेलवे ने 2024-25 के दौरान रणनीतिक लाइनों के संचालन से ₹2,812.59 करोड़ का घाटा दर्ज किया। (आईआर वर्ष पुस्तिका 2024-25 के अनुसार)

• रणनीतिक मार्ग सामान्य यात्री और माल ढुलाई यातायात भी संचालित कर सकते हैं; उनका रणनीतिक वर्गीकरण रक्षा महत्व पर आधारित है, न कि विशेष रूप से सैन्य उपयोग पर।

इंजीनियरिंग कोड अध्याय 18- विविध कार्य - रक्षा उद्देश्यों के लिए आवश्यक कार्य - सामरिक रेखाओं से संबंधित कार्य।

• रक्षा कार्य: रेलवे अनुमानों और रक्षा अनुमानों में विभाजित।

• रेलवे अनुमानों में निम्नलिखित शामिल हैं:

• सामरिक मार्ग पर किए जाने वाले रक्षा कार्यों का संपूर्ण व्यय रेलवे द्वारा वहन किया जाएगा।

• रक्षा अनुमानों के अनुसार:

• सैनिकों के लिए बने साइडिंग, प्लेटफॉर्म आदि के निर्माण की लागत, जिसमें स्टेशन यार्ड की सीमा से परे मुख्य लाइन से साइडिंग या प्लेटफॉर्म के अलग होने की स्थिति में आवश्यक सिग्नलिंग व्यवस्था भी शामिल है।

• यदि रेलवे प्रशासन स्वयं के प्रयोजन के लिए भूमि का अधिग्रहण नहीं करता है, तो सैनिकों के लिए साइडिंग, प्लेटफार्मों आदि के लिए अधिग्रहित भूमि की लागत;

• रेलवे के हिस्से की लागत पर ब्याज और रखरखाव शुल्करक्षारक्षा सेवाओं की ओर से रेलवे द्वारा निष्पादित कार्य।

                वाणिज्यिक लाइनों और रणनीतिक लाइनों के बीच प्रमुख अंतर

• 

ACS 12 - GCC for Works

                                       ACS 12 of GCC for Works

Authority and applicability

Railway Board letter No. 2022/CE-I/CT/GCC-2022/POLICY (3389822), dated 12 August 2026. Applicable prospectively to work contracts of Indian Railways. Click for Railway Board Letter

What is existing?  |  What is revised?

S. No.	GCC Para	What is existing?	What is revised?
1	64(3)(a)	The Arbitral Tribunal had three arbitrators. The General Manager/Additional General Manager appointed two: one Railway nominee and one from the contractor's nominees. The contractor suggested a nominee from the Railway or Indian Council of Arbitration panel within 30 days.	Each party now gives two names in preference order: one Primary and one Standby. The two Primary nominees act on the Tribunal. A Standby nominee steps in automatically only when that party's Primary nominee withdraws or cannot act. The contractor submits two names within 30 days; the General Manager/Additional General Manager approves Railway's Primary and Standby nominees.
2	64(3)(a)(i)	For a Railway-panel nominee, Railway sent at least four names. The contractor suggested at least two names, and the General Manager/Additional General Manager appointed at least one of them.	Railway must send the complete panel of retired Railway officers within 30 days. The contractor selects exactly two names - Primary and Standby - within 30 days. The panel remains free of cost.
3	64(3)(a)(ii)	For the Indian Council of Arbitration panel, the contractor sent at least two names and the General Manager/Additional General Manager appointed at least one. The older webpage link pointed to an engineers' PDF.	The contractor provides exactly two names - Primary and Standby - within 30 days. They may choose any Indian Council of Arbitration panel arbitrator having construction-contract experience. The panel webpage is updated to https://icaindia.co.in/arbitrators. Other listed documents and fees remain broadly unchanged.
4	64(3)(b)	The two selected arbitrators chose the Presiding Arbitrator within 30 days of their appointment. The General Manager/Additional General Manager completed appointment of the Tribunal within 30 days after receiving all three names.	After both parties nominate, the General Manager/Additional General Manager issues a 'Notice of Nomination of Two Arbitrators' in Annexure XVII, including Standby details. The two Primary arbitrators choose the Presiding Arbitrator within 30 days of that notice. The General Manager/Additional General Manager then issues the Tribunal appointment notice in Annexure XVIII within 15 days of receiving all three names.
5	64(3)(c)(i)	If an arbitrator refused, withdrew, vacated office, could not act, died, or caused undue delay, the General Manager/Additional General Manager appointed a replacement in the same manner as the earlier appointment.	The concerned Standby arbitrator is automatically nominated when the Primary arbitrator refuses, withdraws, vacates office, cannot or will not act, or dies. The Presiding Arbitrator must record the substitution and notify both parties within 15 days. The reconstituted Tribunal may continue from the earlier stage.
6	64(3)(c)(iii)	Detailed eligibility conditions were written in the General Conditions of Contract itself: retired Railway officer not below Selection Administrative Grade, one year after retirement; below 70 years; and specified vigilance/penalty conditions.	The age and retirement conditions remain. Other qualifications are now linked to Paragraph 106 of the Indian Railways Vigilance Manual, as amended from time to time. The safeguard against appointing a person who dealt with or expressed views on the dispute continues.
7	64(6)	Railway Board fee rates applied when all three arbitrators came from the Railway panel. If any arbitrator came from the Indian Council of Arbitration panel, Indian Council of Arbitration rates applied.	Railway Board rates now apply to arbitrators whether selected from the Railway panel or the Indian Council of Arbitration panel. The fee is shared equally by both parties, subject to signing the agreement in Annexure XV.
8	Part II	Annexures XVII and XVIII did not exist.	Two new formats are inserted: Annexure XVII - Notice of Nomination of Two Arbitrators; and Annexure XVIII - Notice of Nomination/formation of the Arbitral Tribunal.
9	42(2)(iii)(d)	For a minor-value item (original agreement value below 1% of total original contract value): up to 100% quantity at 100% of tender rate; above 100% to 200% at 98%; beyond 200% in exceptional unavoidable cases at 96%.	The definition and overall 100% variation limit remain. Payment slabs shift upward: up to 200% quantity at 100% of tender rate; above 200% to 300% at 98%; beyond 300% only in exceptional unavoidable cases at 96%.
10	7(a)(i)	The subcontracting limit was 40%; at least 60% had to be executed directly. In calculating subcontract value, the text referred to 'Clause 3.2.1'. Procurement of materials, hiring equipment, or engaging labour was not subcontracting.	The substantive limits and exclusions remain unchanged. The cross-reference is corrected from 'Clause 3.2.1' to 'this Clause'.