Australia Costing Design


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I've only taken basic accounting subjects so I come from a place of ignorance when it comes to managerial accounting.
I'm working on an accounting system for my business. I'm trying to figure out how to go about attributing design costs to the final price of a product?
It seems that functional based accounting only works with manufacturing costs i.e. direct labour, direct materials and overhead. Design doesn't fall into the category of overhead, so it seems that design will go unaccounted for under this costing scheme. So I guess I have to move on to an activity based costing system? Am I on the right track here?
 
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Jun 30, 2017
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You are absolutely on the right track. Management Accounting provides tools to allocate costs and revenues. Only those who understand the "work-flow" of the individual processes in the business cycle are able to allocate costs and revenue in a way that the information provides answers needed to be able influence both, the productivity and the profitability of a company.
 
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