How Boeing tracks costs, A to Z. (includes related article)

Boeing Co. has improved its cost-management procedures by giving its operating units more responsibility for controlling their costs. To accomplish this, Boeing opted to realign its accounting processes to make it easier for cost information to be broken down on a departmental basis. It also made sure that each department received the financial information needed by identifying which cost information was relevant for each unit's operations. Boeing's move toward a cost-management system that supported continuous improvement required several important adjustments, such as the implementation of a modified process-cost accounting system and the use of activity-based analysis in cost-assignment ...

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