Product costing systems


Product costing systems are methods used to manage inventories. Accounting systems primarily engage one of three costing systems at a time: job order costing, process-based costing, or activity-based costing.

1.Briefly explain each of the three costing systems in accounting.

2.Discuss the situations in which each system would be best employed by a business.

Sample Answer

Whereas job order costing is a system for assigning and accumulating production cost of an individual unit of output usually employed when products are dissimilar from one another, process-based costing is often used where there is large scale production of same product and cost of individual unit production can not be easily ascertained. Besides the two concepts, there also is the activity-based costing that involves the assigning of overhead and incidental cost to associated services and products. These accounting concepts are applied in different situations and circumstances. Job order costing is heavily applied when several products manufactured are satisfactorily different from one another and each has substantial cost, process-based costing is used where there is large production of same product while activity-based costing is usually used when apportioning indirect charge to related products.

What is a power module

In the present society, specialists are persistently looking for new types of sustainable power source to limit ozone harming substance emanations (GHGs). Among the a wide range of foundations for environmental change in Canada, transportation is one of the main sources, from singular velocity to the delivery of goods1. In any case, specialists accept that the development and sprouting prevalence of electric vehicles in the ongoing years can enormously decrease the emanation of these GHGs. Among the assortment of electric vehicles, hydrogen power device vehicles are turning into a practical alternative. Hydrogen energy units use hydrogen and oxygen as fuel to deliver power, warmth and water . Hydrogen power devices are charming as it requires the least complex and most bounteous component on earth, hydrogen. 2

Hydrogen Fuel Cell Structure and Chemistry

As opposed to using the commonplace procedure of changing to get hydrogens from hydrocarbons, hydrogen is rather acquired from water through electrolysis. Electrolysis is a procedure that instigates synthetic change by the section of an electrical flow through a solution.3

Fig 1: Schematic indicating the essential activities of a Hydrogen energy unit and the science involved.Source: 4

All power modules are made of four significant segments: the anode, electrolyte, cathode and impetus. Hydrogen, the fuel, associates with the anode which comprises of an impetus, regularly platinum. The platinum oxidizes hydrogen and parts protons and electrons from the fuel. From there on, the electron moves to the cathode through an outer source which is regularly a wire, making an electrical flow happen. In the mean time, the protons move to the cathode through the electrolyte, which for example can be potassium hydroxide. Furthermore, the electrolyte is explicitly utilized for the relocation of positive hydrogen particles, also, the kind of substance used here will decide the sort of power module created. At the cathode, the protons and electrons in the end rejoin and respond with an impetus, for example, nickel, and oxygen to create the side-effect, water. Eventually, hydrogen is expended as fuel, power is made, and water is delivered as the waste item. In any case, all together for this response to happen consistently, a ceaseless stockpile of fuel and oxygen is required. 5

The Different Types of Hydrogen Fuel Cells

As recently referenced, despite the fact that power modules have a similar four significant segments, the kind of electrolyte utilized in the framework will decide the sort of energy unit delivered, thus a wide range of hydrogen power devices can be found. For example, proton-trade film energy components (PEMFCs) use bipolar plate, made of metals or graphite, which acts a terminal in the framework, be that as it may, cost and support can be an issue. In like manner, direct methanol energy components (DMFCs), like PEMFCs utilize a proton-leading layer as an electrolyte, in any case, utilizes methanol as the fuel source, along these lines making both carbon dioxide and water the waste items. Then again, phosphoric corrosive power modules (PAFCs), use phosphoric corrosive, an acidic non-conductive fluid, as the electrolyte, notwithstanding, this can bring about consumption. Basic energy units (AFCs) despite what might be expected, utilizes a blend of potassium hydroxide and water as the electrolyte. AFCs have eminently been utilized by NASA in the Apollo space program. Also, liquid carbonate energy units (MCFCs), use liquid carbonate salts as an electrolyte to control certain mechanical and military material because of its noteworthy proficiency. In conclusion, strong oxide energy components (SOFCs) use a strong artistic electrolyte called yttria-settled zirconia (YSZ) which are frequently structured as chambers because of its piece. Each energy component has its preferences and research is as yet being directed to deliver the most proficient and naturally cognizant hydrogen power device.

Fig 2: Table demonstrating six distinct kinds of energy units and their relative working temperature just as their appropriate application. Source: focus/how-energy components work/6

Uses of hydrogen energy components


There is as of now a wide assortment of vehicles that use hydrogen energy units to control their electric engines. The most well-known one is a FCV (power module vehicle), and in the course of recent years, more vehicle makers have been putting resources into the creation of these vehicles. Toyota, a flow industry mammoth, uncovered that in 2014 it would have cost around 1 million USD to make a hydrogen energy component fueled electric vehicle, however on account of fast advancement of this innovation, in 2015 can be made for as meager as $50,000 USD, empowering shoppers to truly think about changing to this innovation. At the point when the innovation was new, you couldn't really purchase a FCV; just rent one for a couple of years; because of the expense of the energy component innovation inside the vehicle. Another pioneer in the fragment, Hyundai, as of now rents its Tuscon FCV's for $499 USD every month in a 3-year rent term, which incorporates a fuel card that gives free fuel to cover 12,000 miles for each year. Be that as it may, the principle issue with FCVs is the absence of foundation, in this manner an organization called "First Element" started introducing hydrogen siphons at prior fuel stations, drastically reducing down expenses when contrasted with building an entirely different station only for hydrogen.7

The other fundamental strategy for transport that at present uses this innovation is electric transports, called energy component electric transports (FCEB). They are right now working in different urban areas over the world and at last give a clean and naturally well disposed technique for transport for the general population. A bit of leeway of FCEBs over battery fueled electric transports is the proficiency, as a significant issue with battery innovation is its absence of viability in outrageous cold temperatures. Though hydrogen is considerably more steady and isn't influenced by outrageous temperatures.

A third application for the power modules is in distribution centers and assembling plants that require the utilization of forklift trucks and payload taking care of hardware. Hydrogen energy units are fueling this apparatus and giving a perfect option in contrast to gas or diesel-controlled other options. Additionally, they have a bit of leeway over battery worked units since there is no long charging occasions which implies that less units should be purchased so as to stay aware of the workload.8

Transportation of hydrogen:

The underlying stockpiling and transportation techniques for liquidized hydrogen comprised of steel tanks that kept the hydrogen in a fluid structure at around 2000 PSI. This demonstrated to be a successful route at capacity, and since Hydrogen in not destructive, there demonstrated to be no issues with debasement of the steel holders. In any case, new advances in the capacity of Hydrogen has lined within these steel tanks with a carbon fiber composite material that limitlessly improves the solidarity to around multiple times that of steel alone and can even withstand a 100 MPH crash without tearing open. These advances in the treatment of liquidized Hydrogen enables a more secure vehicle of it to market and makes it an a lot more secure and engaging wellspring of energy.9

One of the present strategies for transport of hydrogen to advertise is the sharing of a solitary pipeline, with both petroleum gas and hydrogen gas in a single pipeline, where the two gases are then isolated preceding use. This is an exceptionally proficient strategy for transportation given that the present framework for petroleum gas as of now exists. Also, the nearness of flammable gas considers a quicker recognition of a hole in a pipeline due to the odorants that are added to the petroleum gas. Likewise, an advantage is the upkeep of potential vitality when contrasted with a vitality source, for example, electric; as there is a sure measure of lost vitality because of obstruction in control links over long separations. Be that as it may, with hydrogen there is no misfortune in potential vitality, and this makes it a financially savvy technique for transportation.10

Hydrogen for customer transportation is sold in different structures relying upon the necessary vitality requests and scope of a solitary tank; there is 2 normal and 1 less regular types of hydrogen that are utilized for transportation. The first is packed hydrogen gas which is administered at either 5000 PSI or 10000 PSI. This is a typical structure for vehicles and transports. The other normal structure is cryogenic, super-cooled fluid hydrogen.

The third type of hydrogen is a liquidized slurry that is a hydrogen rich compound. Regularly it is lithium hydride or magnesium hydride that is utilized and is a promising structure given that it very well may be put away at typical living temperatures and treated along these lines as some other fluid given its higher soundness. An utilization of this would see the slurry conveyed to the corner store where it would be isolated into unadulterated hydrogen, and the side-effect (Mg(OH)­2 (milk of magnesia) would then be able to be come back to magnesium hydride for re-use. The benefit of a slurry over cryogenic hydrogen is that it has double the vitality thickness and is a lot less expensive to deliver and ship. 11

Stationary Fuel cells:

Stationary hydrogen energy components are static units that give power and warmth to an encompassing home or building. There are a few kinds, of which incorporate essential power units, uninterruptible power frameworks (UPS) and joined warmth and forces frameworks (CHP).

The CHP frameworks give up to 10 KWe and have a general effectiveness of up to 95%. These frameworks are viable for use in the private part just as loft structures, nursing homes and clinics, and there have been more prominent than 10000 units propelled in Japanese homes. The main restricting variable for the application in the private setting is the cost; which in Japan and south Korea is balanced by government sponsorships. The power device innovation in these units depends on either PEM (proton trade layer) or SOFC (strong oxide energy component) technology.12

An ongoing report (Herrmann et al. 2018), explored the cost productivity of