Railway Accounts Department Examinations

Showing posts with label Captive Consumption. Show all posts
Showing posts with label Captive Consumption. Show all posts

Friday, April 10, 2026

Captive Consumption in Workshop Accounts


Captive Consumption
 

Simply

  • Use of goods produced within the same organization for its own use

  • Not sold in the open market

  • Internal production → internal use


Example (Indian Railways)

  • Workshops like Jamalpur, Kanchrapara, Perambur make railway parts

  • These parts are used within the Railway Workshops only


Specific Example

  • Rail Wheel Factory makes wheels and axles

  • Supplied to railway units (not sold outside)


Why important

  • Reduces cost

  • Ensures quality

  • Maintains self-reliance


One-line memory

  • “Produce → Use internally → No sale outside”