A manufacturing business is one that purchases raw materials and transforms the materials into products it then sells to its customers. A manufacturing business combines materials with labor and supplies to create a product. Customers exchange money for the benefit (or perceived benefit) they receive from the products. Examples of manufacturing businesses are:
- General Motors
To learn more about how financial statements for a manufacturing business work, watch this video:
What is Net Realizable Value (NRV)?
Net Realizable Value (NRV) is the estimated value of an asset or item after subtracting the costs needed to make it ready for sale. It is commonly used for valuing
What is a Factory Overhead Control Account?
A Factory Overhead Control Account, also known as Manufacturing Overhead Control Account or Factory Overhead Control Ledger, is an accounting record used to track and control the indirect manufacturing costs
What is a Cost Driver?
A cost driver is a factor that causes or influences the incurrence of costs within an organization. It is an activity or event that leads to the consumption of resources
What is the Origin of Managerial and Cost Accounting?
Managerial accounting and cost accounting have evolved over time to meet the changing needs of organizations and managers. Here’s a brief overview of their origins: Pioneers such as Frederick Winslow
What is the Difference Between Cost Accounting and Managerial Accounting?
Cost accounting and managerial accounting are closely related branches of accounting that focus on providing financial information for internal decision-making within an organization. While they share some similarities, there are
Manufacturing Inventory Accounts Explained
Manufacturing inventory accounts are used to track and record the costs associated with the manufacturing process. These accounts provide information about the various stages of production and the value of