Manufacturing businesses need more than regular bookkeeping
You need to know what each product actually costs to make.
Say you buy $50,000 in raw materials but only use $20,000 in production. Or a product requires 3 labor hours instead of the 2 you estimated. Add wasted materials, defective products, machine downtime, and unfinished inventory.
These details can completely change your profit. You could be selling something for $100 thinking it costs $70 to make, when it actually costs $95.




