Question: In the last decade Boeing has made several significant changes

In the last decade, Boeing has made several significant changes to its accounting system. None of these changes were for reporting to external parties. Management believed, however, that the new system gave more accurate costs of the airplanes and other products produced.
1. Boeing had been a very successful company using its old accounting system. What might have motivated it to change the system?
2. When Boeing changed its system, what criteria might its managers have used to decide whether to invest in the new system?
3. Is changing to a system that provides more accurate product costs always a good strategy? Why or why not?

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  • CreatedNovember 19, 2014
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