logging in or signing up Accounting system at Boeing Josephrobinson Download Post to : URL : Related Presentations : Let's Connect Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Copy embed code: Embed: Flash iPad Dynamic Copy Does not support media & animations Automatically changes to Flash or non-Flash embed WordPress Embed Customize Embed URL: Copy Thumbnail: Copy The presentation is successfully added In Your Favorites. Views: 388 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: February 13, 2012 This Presentation is Public Favorites: 0 Presentation Description Accounting system at Boeing Comments Posting comment... Premium member Presentation Transcript Accounting system at Boeing Contract and Program costing : Accounting system at Boeing Contract and Program costingBOEING – WORLD’S LARGEST AEROSPACE & DEFENCE COMPANY : BOEING – WORLD’S LARGEST AEROSPACE & DEFENCE COMPANY William Boeing : Established the Boeing in 1916 World’s first passenger plane. Carried 10 people and at a speed of 260km/hr. PLAYING FIELD.. THREE MAJOR BUSINESS SEGMENT : PLAYING FIELD.. THREE MAJOR BUSINESS SEGMENT The Commercial Airplane Military Aircraft & Missile System Space & CommunicationContract costing: Contract costing A form of specific Job Costing Revenues : Fixed price and incentive based Contract R evenues Estimated on the basis of negotiated contract prices but modified by assumptions Contract Options Change Orders Incentives & Award ProvisionPowerPoint Presentation: Contract costing Contract Profits Based on estimated gross margin and cost of sales percentages Contract Costs Estimated on Historical Trends Business Base Economic Projections Factors affecting estimation Technical & Schedule Risk Sub-contractor Process Business Vol. Assumptions Asset Utilization Inflationary TreandsProgram Accounting: Program Accounting Features Extended version of Contract Accounting Smoothing of Cost & Revenue Best suited for Airline Industry Assumption of accurate Long-term forecasts Requires estimation of : 1) Accounting Quantity 2) Expected Selling PricePowerPoint Presentation: Disadvantages Program Accounting Vulnerable to Manipulation Judgmental Impossible to Audit Opaque Accounting SystemACCOUNTING QUANTITY: ACCOUNTING QUANTITY What is Accounting Quantity? Review on a Quarterly Basis. Demand a major deciding factor. Example : 717 Boeing.PowerPoint Presentation: 717 737 747 757 767 777 Cumulative firm orders (CFO) 2002 139 2012 1371 1050 931 597 Anticipated Orders 2002 0 29 49 67 3 Anticipated orders as a % of CFO 2002 0 2 5 7 1 Cumulative firm orders (CFO) 2001 123 1881 1351 1048 934 575 Anticipated Orders 2001 11 49 51 64 25 Anticipated orders as a % of CFO 2001 9 4 5 7 4 Cumulative firm orders (CFO) 2000 151 1722 1338 1042 899 557 Anticipated Orders 2000 48 12 7 49 43 Anticipated orders as a % of CFO 2000 32 1 1 5 8 Cumulative firm orders 717 737 747 757 767 777 2002 140 2000 1401 1100 1000 600 Addition 5 200 2001 135 1800 1401 1100 1000 600 Addition/Deletion (65) 150 50 50 50 2000 200 1650 1351 1050 950 600 The Estimates of Total Program Accounting Quantities and ChangesGraphical Representation: Graphical RepresentationRevenue and Cost Estimation: Revenue and Cost Estimation The use of program accounting is the ability to estimate cost revenue for specific program accounting quantity. The influential factors including various types of costs. Boeing’s management regularly checked the estimating process and updated on quarterly basis. Many financial experts criticized the accuracy of estimating process of program accounting method.Revenue and Cost Estimation..contd.: Revenue and Cost Estimation..contd. Revenue –the price negotiated with the customer. Total program revenue includes all undelivered and unsold units. Cost estimate depend upon different influential factors. Learning curve effect. Deferred production cost. You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.