Stores Budget Preparation Guidelines

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Questions and Answers

What department is primarily responsible for preparing estimates for materials required in manufacturing?

Accounts Department

Stores Department

Manufacture and Repair Operations Department (correct)

Revenue Abstracts Department

What value is assessed for the materials budgeted under manufacturing?

Value of materials based on market rates

Value of materials at latest book average rates (correct)

Cost of materials from the previous year's budget

Replacement cost of materials

Which type of issues does 'Issues to Revenue' refer to?

Production materials for manufacturing

General purpose stores for maintenance and repairs (correct)

Stores for fabrication and construction

Materials for new projects

How should estimates for revenue-related stores be prepared?

By the last three years' average consumption Signup and view all the answers

Who is responsible for checking the estimates prepared for materials issued?

Controller of Stores Signup and view all the answers

What should be done if there are large variations between the communicated figures and previous consumption estimates?

Bring them to the notice of principal officers concerned Signup and view all the answers

What types of products are considered in the materials budget for manufacture?

All types of products as per the production programme Signup and view all the answers

What represents the amount required for the purchase of stores for general purposes?

Excess of total entries on the credit side over the debit side Signup and view all the answers

Which factor is NOT considered when estimating the value of stores to be purchased?

Returns from customers Signup and view all the answers

Which item is included in the consolidated figure of estimates submitted by departments?

Material returned from Works Signup and view all the answers

What type of report is submitted to the Ministry of Railways to estimate expenditure involved for budgeting?

Fortnightly/weekly report Signup and view all the answers

What does the head 'Stores' being debited due to the operation of the stock Adjustment Account indicate?

An item of receipt not covered by Items I to III Signup and view all the answers

What is the purpose of the statement showing stocks at the commencement of the year?

To outline anticipated stock levels for various groups of stores Signup and view all the answers

In the table, what does the 'Anticipated Balance at the End of the Year' represent?

Forecasted stock that will remain at year end Signup and view all the answers

Which column represents the actuals of last year in the statement?

Column 3 Signup and view all the answers

How are 'Receipts' indicated in the provided statement?

They are included in both the current and subsequent year estimates Signup and view all the answers

Which of the following is NOT included in the statement?

Estimated expenditures for employee wages Signup and view all the answers

What do the figures in the table represent?

Figures in thousands of Rupees Signup and view all the answers

What is indicated by the 'Issues' column in the statement?

Total quantities taken from inventory during the year Signup and view all the answers

In the context of the statement, what is meant by 'General Works Purposes'?

Stock related to general infrastructure projects Signup and view all the answers

What is the importance of estimating future balance requirements in the statement?

It assists in determining stock purchasing needs Signup and view all the answers

What is the ideal closing balance percentage for ordinary stores?

40% Signup and view all the answers

What should be considered in estimating the closing balance of stores in stock?

The value of scrap and surplus stock Signup and view all the answers

Which item corresponds to the opening balance at the commencement of the year?

Closing balance outstanding stores suspense balances Signup and view all the answers

Which type of store is specifically for production of new Rolling Stock?

Stores for production of new Rolling Stock Signup and view all the answers

What is the last item that should be budgeted for in estimates?

Stores for general purpose Signup and view all the answers

What is the primary purpose of the value of stores to be purchased for works?

For ultimate issue to works not identifiable ab-initio Signup and view all the answers

Which of the following should NOT be included under stores suspense?

Non-emergency surplus stock Signup and view all the answers

How should the two sides of the budget be handled after entering all items?

Each side should be totalled separately Signup and view all the answers

What is the purpose of including stores for issue to Coach & Wagon Builders?

For the building of new Rolling Stock Signup and view all the answers

What should be the status of the closing balance outstanding stores suspense balances?

As low as possible Signup and view all the answers

What does the total amount for 'Purchase of Stores for Works and General purposes' exclude?

Coal and Fuel Oil Signup and view all the answers

Which agency is responsible for the actual purchases listed under Ministry of Supply?

D.G.S. & D. Signup and view all the answers

Which of the following categories does NOT fall under the purchase methods detailed?

Local Market Purchases Signup and view all the answers

What should the Controller of stores base his estimate for sales and transfers on?

Value of indents submitted by the zonal Railways Signup and view all the answers

Which item of expenditure is explicitly mentioned in the total sales and transfers?

Spares and Other Items Signup and view all the answers

The 'Inter-Railway Purchase/Sales/Transfers' method includes which of the following?

Sales/exchanges within Railway systems Signup and view all the answers

What is included in the total amount for 'Imports' with regards to Direct Purchases?

Steel and Other items Signup and view all the answers

Which Production Unit is NOT mentioned in the Inter-Railway purchase methods?

B.L.W. Signup and view all the answers

What does the 'Total' line in the budget indicate?

Total estimated expenditures Signup and view all the answers

Which of the following is an example of a direct purchase mentioned?

Steel Imports Signup and view all the answers

Which type of materials fall under engineering stores?

Brushware and abrasives Signup and view all the answers

What does the category 'Electrical Stores' specifically refer to?

Signal and telecommunication stores Signup and view all the answers

What types of products are classified under general stores?

Chemicals, drugs, and stationery Signup and view all the answers

Which of the following lists includes only non-ferrous metals?

Copper, Aluminium, and Gold Signup and view all the answers

Which category does not typically include items considered fuel-related?

General store supplies Signup and view all the answers

What is a key characteristic of telecommunication stores?

They're primarily focused on electrical components Signup and view all the answers

Which of the following is not part of the classification for personal equipment?

Cutlery Signup and view all the answers

Which of the following is identified as a specific type of packing material?

Refractories Signup and view all the answers

Which factor should be subtracted when estimating the value of stores to be purchased?

Estimated throw-forward to next year Signup and view all the answers

What is typically NOT included in the estimate for timber?

Woodworking tools Signup and view all the answers

What is the primary purpose of the fortnightly/weekly reports submitted to the Ministry of Railways?

To provide updates on shipments and expenditures Signup and view all the answers

What type of value is expected to match with receipts from manufacturers into stores?

Credit in the Manufacture Suspense Budget Signup and view all the answers

What does the head 'Stores' being debited indicate regarding the stock Adjustment Account?

It signifies incidental receipts not covered in the main categories Signup and view all the answers

Which item is included in 'Other debits' as mentioned in the provided content?

Value of fabricated materials kept in stock Signup and view all the answers

What constitutes the ideal closing balance for ordinary stores?

40 percent of the average issue of ordinary stores for one year plus emergency stores Signup and view all the answers

Which factor is considered when estimating the closing balance of stores in stock?

Value of scrap and surplus stock at the year's end Signup and view all the answers

What should the closing balance outstanding stores suspense balances ideally be?

As low as possible to minimize inaccuracies Signup and view all the answers

Which type of stores is associated with the production of new Rolling Stock?

Stores for production of new Rolling Stock Signup and view all the answers

What is included when estimating the value of general purpose stores?

Stores passing through Stores Suspense for maintenance and repairs Signup and view all the answers

How should stores for Coach & Wagon Builders be treated in financial estimations?

Included under stores suspense for building new Rolling Stock Signup and view all the answers

What is the best budgeting approach after completing estimates for all items?

Both sides should be balanced and reconciled Signup and view all the answers

What is the main purpose of including costs for stores passing through Stores Suspense?

To ensure accurate tracking of inventory before final issues Signup and view all the answers

What is the exclusion rule for the total amount related to the purchase of stores?

Any anticipated increases in storage requirements Signup and view all the answers

What does the term 'Surplus Stores' refer to in the context of balance stores?

Stores that exceed the normal operational requirements Signup and view all the answers

Which of the following is included in the 'Closing Balance' of stores?

Amount of usable stores remaining Signup and view all the answers

In the context of the budget statement, what does 'Reduction or addition during the year' signify?

Net change in stock levels due to purchases or issues Signup and view all the answers

What is the implication of having a large difference between actual figures and revised estimates for previous years?

Inaccurate forecasting and planning Signup and view all the answers

Which aspect of the balance stores does the 'Remarks' column typically address?

Condition or usability of items Signup and view all the answers

Which statement accurately describes the purpose of the 'Total' line in the budget?

It accounts for all financial activities related to stores Signup and view all the answers

In the analysis of balance stores, what is the significance of estimating future balance requirements?

To plan for potential store shortages and excesses Signup and view all the answers

What factor does NOT contribute to the calculation of 'Actuals for last year'?

Projected future estimates Signup and view all the answers

Which of the following is an important aspect of the 'Actuals for last year' in store management?

They set a benchmark for budget estimates Signup and view all the answers

What does the 'Opening Balance' signify in the context of stock analysis?

Value of stores at the commencement of the fiscal year Signup and view all the answers

What approach should be used to assess the value of materials budgeted for manufacturing?

Adopting the latest book average rates available. Signup and view all the answers

What method will form a guide for estimating issues under 'Issues to Revenue'?

Average consumption from the last three years. Signup and view all the answers

Who is primarily responsible for preparing estimates for the issues of stores for fabrication?

The manufacturing department. Signup and view all the answers

What should happen if there is a significant discrepancy between departmental estimates and previous consumption data?

Notify the Controller of Stores to address the discrepancies. Signup and view all the answers

What is the purpose of checking estimates against 'stores from stock' obtained from divisions?

To align estimates with funding provided. Signup and view all the answers

What specific consideration is taken into account for estimating materials under the 'Issues to Capital Manufacture' category?

The approved production programme of the Production Units. Signup and view all the answers

Which of the following is NOT a valid input for estimating materials in the manufacturing budget?

Experimental production efficiency rates. Signup and view all the answers

Study Notes

Stores Budget

The stores budget for the following year and the revised estimate for the current year must be prepared by the stores controller, assisted by the stores accounts officer, and submitted to the Railway Board by December 23rd each year, along with Annexures A, B, and C.
Instructions should be followed for the preparation of these budgets, excluding fuel oil budgets which are prepared by separate officers.
Estimated opening balance figures for the next year include estimated stock value, outstanding balance under suspense accounts (purchases, imported goods, indigenous sales), and the amount in the stock adjustment account.
Expenditure on stores for specific projects (Works) should be directly recorded against the specific work and not go through the general stores suspense account.
Division heads need to submit requests for work-related store estimates to the stores controller, who then incorporates them into the budget.
Department heads can modify budget estimates if work schedules change, and the stores controller will be informed.
Manufacturing and repair operations estimate requests should be made by concerned departments and accounts officers, then submitted to the stores department.
Store budgets should reflect the quantity and value of materials needed from the workshops for production based on expected production.

Annexure A

This document provides a statement of starting stock levels, expected receipts, and issues, and expected ending stock levels for major store groups.
Data is presented for different categories of goods like steam locomotive parts or electrical stores, in thousands of rupees.

Annexure B

This document presents an analysis of existing balances across different stores categories.
Shows the ordinary stores, special work stores, surplus stores (movable, dead), and scrap.
Includes opening and closing balances, and data for the previous and current years.
Shows estimated figures for the budget year.

Annexure C

This document shows demand details for securing stores through the Ministry of Supply, inter-railway transactions, direct purchases, and other procurement types.
Includes a breakdown of the procurement plan, including expected quantities, costs, and source information.

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Description

This quiz focuses on the essential guidelines for preparing the stores budget for the upcoming year and revising the current year's estimates. Participants will learn about the roles of various officers, the necessary documentation, and the procedures for recording expenditures. Understanding these aspects is crucial for effective budget management in a railway context.