The diagram shows the construction of a carbon film resistor:
During manufacture, a thin film of carbon is deposited onto a small ceramic rod. The resistive coating is spiralled away in an automatic machine until the resistance between the two ends of the rod is as close as possible to the correct value. Metal leads and end caps are added, the resistor is covered with an insulating coating and finally painted with coloured bands to indicate the resistor value.
Carbon film resistors are cheap and easily available, with values within ±10% or ±5% of their marked, or 'nominal' value. Metal film and metal oxide resistors are made in a similar way, but can be made more accurately to within ±2% or ±1% of their nominal value. There are some differences in performance between these resistor types, but none which affect their use in simple circuits.
Wirewound resistors are made by winding thin wire onto a ceramic rod. They can be made extremely accurately for use in multimeters, oscilloscopes and other measuring equipment. Some types of wirewound resistors can pass large currents without overheating and are used in power supplies and other high current circuits.