TRAFFIC COSTING
Present Costing:
Unit cost of goods services computed by Zone and compiled by Rly Board at all India average.
Coaching done class wise for passenger service and parcel, luggage, postal and catering services.
Board computes commodity costing for 29 selected commodities that constitute 94 % of originating tonnage and 95 % of such earnings. Standard train costing is done based on the unit cost not compiled.
Specific train costing is carried out based on actual survey.
Uses:
1. financial appraisal of various projects
2. granting special rates
3. costing of special trains both freight and passenger services
Desirable objectives:
- knowing the cost of various elements for effective cost control facilitates improving productivity of services.
Hurdles:
zonal rly is taken as a unit- field unit cost cannot be ascertained as inefficient field units get merged with efficient field units- no appreciation for good performance and no punitive action for wasteful expenditure
Hassan Iqbal committee suggested activity based unit costing at field unit level – that is not done atleast divisional level study to be done since accounting system provides for that exercise
Fully distributed costs – no proper guide for formulation of rates for different commodities or different class of passengers travel – highly variable and keep revised
GTKM for all statistical purpose seems irregular
cost of van and shunting goods trains still done though obsolete – to be dispensed with
no marshalling
no smalls and repacking
suggestions:
filed unit study or divisional level
budgeting reforms- segregate fixed and variable costs – provide fully for fixed and for variables by determining the anticipated cost of performance and multiplying the same with the anticipated performance units – divide zone into various responsibility centres down to grass root level in divisions and workshops each responsibility centre to be given a unique code
short term variable cost – less than five years long term – five to ten years 11 years period prescribed for productivity tests
social service obligations a. passenger and other coaching services
b. essential commodities carried below cost
c. operation of uneconomic branch lines
d. new lines opened for traffic during the last 15 years
5 SFC needs review – after five years or so when special locos are introduced
6. line haul cost at various speeds to be done by Engg analysis not by accounting or statistical method
7. GTKMs based on standard rake composition duly undating it for additions and deletions – monthly basis
8. train costing to be reviewed – enroute collection by TTE unreserved earnings etc to be taken into account
9. costs at Rajdhani is excess 10 % more for I AC, 2 AC ACCCC is compared to Mail/Express trains.
Present Costing:
Unit cost of goods services computed by Zone and compiled by Rly Board at all India average.
Coaching done class wise for passenger service and parcel, luggage, postal and catering services.
Board computes commodity costing for 29 selected commodities that constitute 94 % of originating tonnage and 95 % of such earnings. Standard train costing is done based on the unit cost not compiled.
Specific train costing is carried out based on actual survey.
Uses:
1. financial appraisal of various projects
2. granting special rates
3. costing of special trains both freight and passenger services
Desirable objectives:
- knowing the cost of various elements for effective cost control facilitates improving productivity of services.
Hurdles:
zonal rly is taken as a unit- field unit cost cannot be ascertained as inefficient field units get merged with efficient field units- no appreciation for good performance and no punitive action for wasteful expenditure
Hassan Iqbal committee suggested activity based unit costing at field unit level – that is not done atleast divisional level study to be done since accounting system provides for that exercise
Fully distributed costs – no proper guide for formulation of rates for different commodities or different class of passengers travel – highly variable and keep revised
GTKM for all statistical purpose seems irregular
cost of van and shunting goods trains still done though obsolete – to be dispensed with
no marshalling
no smalls and repacking
suggestions:
filed unit study or divisional level
budgeting reforms- segregate fixed and variable costs – provide fully for fixed and for variables by determining the anticipated cost of performance and multiplying the same with the anticipated performance units – divide zone into various responsibility centres down to grass root level in divisions and workshops each responsibility centre to be given a unique code
short term variable cost – less than five years long term – five to ten years 11 years period prescribed for productivity tests
social service obligations a. passenger and other coaching services
b. essential commodities carried below cost
c. operation of uneconomic branch lines
d. new lines opened for traffic during the last 15 years
5 SFC needs review – after five years or so when special locos are introduced
6. line haul cost at various speeds to be done by Engg analysis not by accounting or statistical method
7. GTKMs based on standard rake composition duly undating it for additions and deletions – monthly basis
8. train costing to be reviewed – enroute collection by TTE unreserved earnings etc to be taken into account
9. costs at Rajdhani is excess 10 % more for I AC, 2 AC ACCCC is compared to Mail/Express trains.
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