Boeing Co. is analyzing its cost structure using Marginal Cost Accounting and Activity-Based Costing:

Requirements:

• Calculate the Marginal Cost of producing an additional aircraft:
  • Variable Costs: $50,000,000
  • Fixed Costs: $20,000,000

• Implement Activity-Based Costing to allocate engineering and testing costs.
• Compare the cost per unit under Marginal Cost Accounting and ABC.
• Evaluate the advantages of ABC over Marginal Cost Accounting in aerospace manufacturing.
• Discuss how Standard Cost Accounting could enhance cost management practices at Boeing.

Cost Calculation (Marginal Cost Accounting):

Category	Amount ($)
Variable Costs	$50,000,000
Fixed Costs	$20,000,000
Total Cost	$70,000,000