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<h1>Cost of Production for Captive Consumption standardises components and absorption rules for assessable value determination</h1> Cost of Production for Captive Consumption prescribes uniform principles to determine the assessable value of excisable goods used within the same organization: cost of production includes Material Consumed, Direct Wages and Salaries, Direct Expenses, Works Overheads, Quality Control, R&D, Packing and production-related Administrative Overheads, adjusted for opening/closing stocks and recoveries. Variable overheads are absorbed on actual capacity utilisation; fixed overheads on normal capacity or actual utilisation, whichever is higher. Joint products, by-products, scrap, free inputs and exclusions such as interest and abnormal costs are treated according to specified rules. A prescribed cost sheet and disclosure and certification requirements support verification.