Manufacturing expenses refer to the costs incurred in the production of goods. These expenses include direct costs like raw materials, labor, and manufacturing overhead, which encompasses utilities, rent, and equipment maintenance. Understanding these costs is essential for businesses to price their products effectively and maintain profitability. Accurate tracking of manufacturing expenses helps companies identify areas for cost reduction and efficiency improvements. By analyzing these expenses, businesses can make informed decisions about production processes and resource allocation, ultimately leading to better financial performance and competitiveness in the market.