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Explanation: Manufacturing Expenses refer to the costs incurred by a company in the production process of goods or services. These expenses include direct costs associated with manufacturing activities, such as raw materials, labor wages, utilities, depreciation of manufacturing equipment, and overhead costs like factory rent and maintenance. Manufacturing expenses are essential components of a company’s cost structure and are incurred to convert raw materials into finished products.
Example: Maruti Suzuki reports Manufacturing Expenses of 4,915.60 crore rupees as of FY23. These expenses represent the total costs incurred by Maruti Suzuki in its manufacturing operations, including expenses related to raw materials, labor, equipment, and facility maintenance. Monitoring Manufacturing Expenses helps Maruti Suzuki assess the efficiency of its production processes, identify cost-saving opportunities, and evaluate the overall profitability of its manufacturing operations.
You can view the quarterly and annual value of Manufacturing Expernse for any company on Radar under Total Expense in the Quarterly Results and Yearly P/L sections respectively.