Question - What do you understand by primary unit of expenditure?
Answer – Primary unit of expenditure -
The concept of primary unit of expenditure is an important tool for the Indian Railways to manage its resources effectively and to ensure that funds are allocated to areas that are most critical to the functioning of the railway network.
The primary unit of expenditure refers to the basic unit of spending that is used to allocate funds to different departments and activities of the Indian Railways.
The primary units are an important and integral part of the classification of expenditure as they serve to analyses the expenditures by the elements of cost viz wages / stores / other expenditure etc. A few examples of classification using the code of primary units of expenditure. The code 27 representing PU-27 ( Primary unit 27 ) ‘’ Cost of material from stocks. And the code 28 representing PU-28 ( Primary unit 28 ) ‘’ Cost of material direct purchase.
