@angelBraids - You could well be right there. I know a few people who have their own business and they have all struggled with costing. Based on what I've learned from them it seems there is sometimes confusion about how to classify expenses.
It's very important that someone records the direct manufacturing costs, but that they aren't confused with marketing, wear and tear, or any other indirect costs. Many countries allow certain parts of business spending to be set against tax owing. Making an inaccurate claim by mistake isn't something you really want to do!