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?
