Lowkus
Active member
I like using my own definition of development costs: if it requires a material to develop a product, I call it a development cost. If it requires a machine to develop a product, I call it a development cost. If it requires people to develop a product, I call them a development cost. If it requires a building to house the people that are required to develop a product, I call it a development cost. If it requires people to guard the building that houses the people that develop a product, I call them a development cost as well. I add up everything involved and related to the development of a product, and call it a development cost, because every piece is somehow related to the development process of the finished product. Maybe not directly, but somehow it'll factor in.Jarred Land said:Sorry man no.. there is only one aspect of that that is counted as development.. and guess which one it is? I'll give you a hint.. it has the word development in it.
Rent and Paying the people the non engineers that open the doors every morning is not development costs.
The a very large percentage of the CDB (cost of doing business) goes to non development expenses.
If there is an industry standard for the term "development cost", and I'm sure there probably is, feel free to let me know. And please let me know from which group you're referencing the definition; accounting, software development, systems analysis, manufacturing, etc.
I'll keep using my own definition until I'm confident that the industry standard definition is widely accepted and makes sense.