Functions of Industrial Manufacturing Companies Operating in Indonesia

Rancakmedia.com - Company manufacture Industry is a company engaged in selling various raw goods or raw materials and semi-finished materials. The purpose of selling a manufacturing company is to provide raw materials to be managed into a product to meet market demand.

The more market demand, the more production processes will be carried out by manufacturing companies. In general, companies produce products that the market wants.

Therefore, there are various factors involved in the manufacturing sales process, such as human resources, natural resources, and machine tools.

Manufacturing Company Functions

Its function as a seller of products and business activities makes a manufacturing sales company categorized as a trading company. For the management itself, manufacturing sales are usually carried out at the factory so that it is more centralized.

Manufacturing companies are companies that have activities such as buying raw materials and then processing raw materials by incurring other costs into finished goods that are ready for sale.

One of the parts of a manufacturing company in Indonesia is usually called a factory. The factory is a place for the manufacturing process.

In accounting, inventory is goods owned by a company with the aim of selling, and inventory can be divided into three, namely raw material inventory, work in process, and finished goods. Inventories are company assets that are used to conduct sales transactions.

Operational Activities

There are a lot of operational activities carried out by the company at this time, so the more activities carried out, the more problems will be faced.

Problems that are likely to occur are in very limited organizational elements so that one person does more than two jobs, recording errors when purchasing and receiving raw materials to recording them in the inventory section.

So it is very important to record and measure the costs of manufacturing companies using accounting methods. Problems in a company should be prevented or minimized, namely by providing appropriate controls on the company's operational activities.

There are many examples of manufacturing companies that you can find in Indonesia with various types of industries. Here are examples of Manufacturing companies that you often find:

The Food Manufacturing Industry transforms livestock and agricultural products into products for intermediate or final consumption. The industrial group is distinguished by the raw materials (generally derived from animals or vegetables) that are processed into food products.

Food product Products produced in these companies are usually sold to wholesalers or retailers for distribution to consumers.