The difference between factory cost of goods produced and its market value is

The difference between factory cost of goods produced and its market value is called manufacturing profit. This represents the amount of profit a manufacturing company makes from producing goods, taking into account the costs of raw materials, labor, and overhead expenses, and the selling price of the finished goods. The market value is the price at which the finished goods can be sold in the market. The factory cost of goods produced includes all the direct and indirect costs incurred in the production process, including direct materials, direct labor, and factory overheads. Therefore, the difference between the factory cost of goods produced and the market value represents the profit made by the manufacturer after accounting for all the production costs.