Manufacturing accounting also comes with its own set of challenges different methods for determining production, labor, and inventory costs different valuation methods for that inventory and on and on.
Manufacturers also procure the raw materials and components necessary to build those goods, hire and pay the workers to assemble those goods, and, yes, ship and sell, store and move, provide services for those goods, and so much more. Manufacturers take a unique approach to accounting because they don’t just ship, sell, and service goods – they create goods.