TRAFFIC COSTING- GREEN BOOK

After segregating the freight expenses under each head of account, they are required to be regrouped into following functional Groups :

1. Running (a)   Through Goods ,  (b)   Van and shunting goods. 2. Marshalling. 3. Terminal Operation. 4. Transhipment at Break of gauge point. 5. Special Services for smalls (Repacking), 6. General overhead charges

For this, various statistical parameters which contribute in above-mentioned areas are analyzed in the form I of the Green Book to determine the ratios in which the expenses are to be apportioned in the above-mentioned categories.  The performance factors for through trains and Van & Shunting goods trains are also determined at this stage.

Applying these to the relevant head of account, the freight expenses are split into above mentioned functional groups.

Development of unit costs

Unit Cost is the cost per unit of output for various functional group of transport.    Green Book is the Basic document for developing the goods unit costs.    It consists of seven schedules A to G.

Schedule A

Schedule A provides framework for distributing Working expenses for goods services including interest and depreciation among various functional groups of services.   The general overheads are then distributed to these functional groups on pro-rata rupee basis.   Expenses of running (line haul cost) are further split in the cost of carrying unit i.e., wagon and cost of hauling payload.

Schedule  B

 In the Schedule B, working expenses of various functional goods services are divided by the corresponding service units to arrive at the Unit costs.     Some of the Unit Costs of Schedule B are: Terminal Cost per tonne. Total Terminal Cost per wagon in full loads, Line haul cost per train km., Line haul cost per wagon km. etc.

Schedule C

This schedule consists of the Performa for further segregation of expenses into different sub-activities like expenses of documentation, traction-wise expenses of train engines, other operating expenses.

Schedule D

This schedule uses the segregation of expenses carried out in schedule C, to arrive at various Unit costs.  It gives the cost of documentation per invoice, cost of traction per engine hour, cost of traction per 1000 GTKM for each traction separately.

Schedule E

In this schedule, the expenses under different abstracts are combined for computation of Unit Cost for various facets of operation such as cost of Terminal operation, cost of transhipment, cost of repacking etc.   Unit costs are also calculated separately for through trains and Van & Shunting goods trains.

Schedule F

Under this schedule, the total expenses under each facet of operation as worked out in Schedule E are divided by the related service units to work out the unit costs.   Central charges are also calculated as a percentage of working expenses.                                       Some of the unit costs worked out in schedule F.

Terminal services (a)Cost of documentation per invoice, (b)Cost of handling per tone, (c)Other terminal expenses per tone(d)Other terminal expenses per wagon (full load), Repacking (e)Cost of repacking of smalls per tonne per handling

Transhipment

(f)Cost of transhipment per tonne per transshipment, (a)BG (b)MG, Marshalling, (g)Cost of marshalling per wagon per yard handled.Prov & Maintenance of wagons h)Cost of Prov. And maint. Per wagon

Line Haul(Movement) costs (i)Cost of line haul per 1000 GTKM for each traction separately,(j)Cost of line haul (other transportation) per 1000 GTKM,(k)Cost of line haul (other transportation) per Train Km,(l)Cost of line haul track and signalling per Train Km,(m)Cost of line haul track and signalling per 1000 GTKM,Overheads,(n)General overhead charges as % of direct costs,(o)Central charges as % of Total cost.

Schedule G

This schedule contains the summarised results of unit costs as worked out in Schedule B, D and F,

Group A Costs

These are fully distributed costs and include interest, depreciation and overheads.

Group B Costs

Under Group B Costs, Unit Costs for each type of traction and also for through goods and Van and shunting goods train are given.  Over heads & central charges are shown separately as percentages.  For working out total costs, these will have to be added to the Unit Cost at the end.

GREEN BOOK