Airplane manufacturer Boeing (NYSE:BA) can sell planes like the 787 Dreamliner for much less than it costs Boeing to build them, but still report huge profits on these sales. How is this possible? In this video, we take a look at Boeing's use of program accounting, a relatively rare accounting practice which allows the company to estimate future profits and book them in a current quarter, and ask what this means for investors.
Daniel Ferry is a logistics nerd with a transportation planning background who focuses on transportation and advanced manufacturing companies. When he's not writing about trains, planes, and such, he enjoys learning and thinking about the business behind his favorite things: music, media, and good food and drink.
- May 16, 2013 at 6:59PM