Raytheon: An International Firm
Raymond C. Branham
Embry-Riddle Aeronautical University

Managerial Accounting for Decision Making (MBAA 517)
Dr. Mark Bellnap
December 1, 2011
TABLE OF CONTENTS

Abstract 3 Raytheon: An International Firm 4
Section I 4 Goods and Services, Market Share, Geographic Locations, and Major Competitors 4
Section II 5 Activity Based Costing at Raytheon 5
Section III 8 Standard Costs at Raytheon 8
Section IV 14 Relevant Costs at Raytheon 14
Section V 16 Summary, Conclusion, and Recommendations 16 References 18 Appendix 19

Abstract

In today’s hectic economic environment, a company’s financial performance is becoming a highly focused upon part of successfully running a company in America and throughout the World. Equally important, is the ability to address accounting matters in this environment. At Raytheon, it is the task of each function within the company to consider each and every accounting aspect, because their customers are all over the world and each one of those customers approaches financial matters in unique ways. For Raytheon to maintain its success, it is imperative for each employee to understand how to manage these accounting aspects. The lack of accounting knowledge and specifically, each unique accounting approach, and how to execute each approach is why there is a huge problem with finances in corporate America today. Many organizations have altered their approach to this issue, but Raytheon has stood the test of difficult economic times because of ethical accounting practices and principles. The development of ethical accounting practices at Raytheon helps to educate their employee’s about these unique accounting practices principles, which enables them to provide excellent customer service to all of their customers throughout the world today. The results of these unique accounting