Answered step by step
Verified Expert Solution
Question
1 Approved Answer
highlighted is the questions that need to be answered along with what is expected in the second picture Aircraft manufacturers use job-order costing to track
highlighted is the questions that need to be answered along with what is expected in the second picture
Aircraft manufacturers use job-order costing to track the cost of an airplane. Supply chain management and production controls also play an important part in managing and controlling production costs. But, fry as they might, things don't always go according to plan, In the late 1990s, The Boeing Company's top management had been seeking a merger with McDonnell-Douglas Corporation, whose board of directors was reluctant to approve a deal, Finally, the deal went through, and the world's largest aerospace company was born, a company that could compete in both the commercial and defense aeronautics markets and even in more speculative flight ventures like space shuttles and rockets. Unfortunately, as reported by BusinessWeek in May 2002 following a three-month investigation, "a disaster was quietly unfolding inside Boeing's sprawling factories-one that would ultimately...cause several executives to lose their jobs, and lead to claims of accounting fraud." During this period, high demand for Boeing's airplanes in a strong economy flew head on into a disrupted production environment caused by efforts to modernize manufacturing processes, leading to "a manufocturing nervous breakdown." The result was dramatically reduced profitabiity, a problem whose size was allegedly hidden from investors so that the inevitoble drop in Boeing's stock price would not jeopardize the McDonnell-Douglas deal. Moreover, the BusinessWeek article reports that. "Boeing did more than simply fail to tell investors about its production disaster. It also engoged in a wide variety of aggressive accounting techniques that papered over the mess." After the merger with MCDonnell-Douglas, the fruth came out in the form of much lower earnings. What is your view of how Boeing handled its cost overruns, its production problems. and the merger with MCDonnell- Dougias? 1 ipoge Did the company's fop executives act ethically? How about their accountants? In the years since the Boeing-McDonnell merger, the company has faced other highprofile production problems, and it seems to have taken a lesson from the earlier debacle. For example, beginning in the early 2000 s and through the present day. Boeing's new 787 model has faced a variety of problems: delays relating to subcontracting of construction and carbon fber technology: groundings due to problems with lithium-ion batteries; and frustrating fuel system and engine problems. But in contrast to the secrecy surrounding production problems at the time of the McDonnell-Douglas merger, these challenges have played out in public with a reasonable degree of transparency from Boeing. Do you think Boeing has become a more transparent company? What would you advise them regarding the ethics of secrecy versus disclosure if a major deal like the MCDonnell-Douglas merger were to be on the line in the future? Your case submission should include two formats 1. Word Document - Times New Roman, 12 Point Font The content should include but may not necessarily be limited to the following: 1. Introduction (assume that the audience have not read the case). 2. Statement of the Problem (lay out what you perceive as the scenario). 3. Analysis (discuss the case, stating your responses to the questions) Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started