Optimization of Process Cogeneration Systems

Question: Discuss about the Optimization of Process Cogeneration Systems. Answer: Introduction The present assignment aims to reflect understanding on the costing systems used by a company incorporated in Middle East region. The study highlights the comparison and contrast of the costing system used by the company together with the advantages and disadvantages. For the purpose of explanation on the costing system, Kornit Digital Limited based in Israel has been selected which is a manufacturing company at international level engaged in production of industrial printers and other chemical garments. Costing system is essential for the manufacturing companies to evaluate the production costs for analyzing the profitability, inventory and sales revenue. In order to evaluate the cost control process that is essential to maximize the profitability of the company, application of appropriate costing systems is critical which determines the correct product cost. Accordingly, the most common costing systems used by the manufacturing companies are job order costing and process costing (Shrouf et al., 2014). It has been observed that the company uses the process costing system to calculate and recognize the cost of manufacturing the products separately with respect to each of the process use to manufacture goods. As the company involves in manufacturing of different products it requires different departments like different production system to produce inkjet, different system for producing pigmented ink while another different system to produce chemical products (Bamufleh, Ponce-Ortega E l-Halwagi, 2013). As the company produces different types of products, the management can also consider the job- order costing system, which is used to recognize the actual cost of material and direct labor. On the contrary, Process-costing system is considered to determine the cost for each of the process considering the different stages of production that performs the conversion of raw materials into finished products. Process costing system is recommended to use when the company manufactures identical goods in large quantities and the amount of cost is transferred to different process systems (Richards, 2014). However, job-costing system determines the cost of each job, which is considered more appropriate to apply cost control approach to maximize the profitability. On the other hand, process- costing method reflects single process cost for all the products at the initial stage while the total cost is classified over the units produced by the company. Accordingly, process- costing system used by K ornit Digital represents total cost of units produced by the company (Kornit Digital, 2017). Besides, if the company uses the method of job- order costing, it will reflect the cost of each job or products, which will provide better analysis for cost control and improve the profitability. Conclusion In view of the discussion on the costing system used by the company, it can be said that the costing system is used to determine cost control for production process so that the company can maximize its profitability. As Kornit Digital uses process costing for producing different products, it can be said that the method of job- costing would provide appropriate cost of producing different products like printers and chemical products. Accordingly, job- costing reflects total cost of each different product that provides better understanding. Reference List Bamufleh, H. S., Ponce-Ortega, J. M., El-Halwagi, M. M. (2013). Multi-objective optimization of process cogeneration systems with economic, environmental, and social tradeoffs.Clean Technologies and Environmental Policy,15(1), 185-197. Kornit Digital (2017).| Advanced Digital Textile Printing Solutions. Kornit Digital. Retrieved 1 March 2017, from https://www.kornit.com/ Richards, G. (2014).Warehouse Management: A complete guide to improving efficiency and minimizing costs in the modern warehouse. Kogan Page Publishers. Shrouf, F., Ordieres-Mer, J., Garca-Snchez, A., Ortega-Mier, M. (2014). Optimizing the production scheduling of a single machine to minimize total energy consumption costs.Journal of Cleaner Production,67, 197-207.