mjoelnir wrote:To put it just very simple, you are wrong. If Boeing owns the tools at the supplier, it is not booked under deferred production cost, but under unamortized tooling and other non recurring cost. This you can activate and amortize over time. Does not depend on using program for cost accounting and is done the same way for unit cost accounting.
The Boeing financial reports mention both cost amounts separately: http://www.boeing.com/investors/account ... ions.page/
4Q 2017 deferred production cost 27.3 billion USD and tooling and other non recurring cost 3.6 billion USD.
However, Boeing is clearly lumping deferred production costs and unamortised tooling together for the 787. Per their statement, they expect to recover $23,818million from the first 1,200 787 deliveries and a further $7,115million from the remaining 100 in the accounting block. Those two figures combine to give a total of $30,933million which is exactly the combination of deferred production costs ($27,308million) and unamortised tooling ($3,625million) at the end of 2016.