What is included in the cost of material purchases?

Materials procurement cost is the cost of raw materials and items purchased by an enterprise in order to produce products or provide services. It is an important part of an enterprise's production costs and directly affects its profitability and competitiveness. It contains the cost of purchasing raw materials, the cost of purchasing auxiliary materials and consumables, the cost of inventory management, and the cost of supply chain management.

I. Purchasing Costs of Raw Materials

Raw materials are substances necessary for the production process of an enterprise, such as metals, plastics, textiles and so on. Enterprises need to buy these raw materials from suppliers and pay the corresponding procurement costs, including payment, transportation costs and import duties. These purchasing costs directly affect the cost and selling price of the product.

Second, the procurement of auxiliary materials and consumables Chi Liang honored the cost

Auxiliary materials are substances used in the production process to assist production, such as additives, paints, glues and so on. Consumables are items used for consumption in the production process, such as paper, chemicals and so on. Enterprises need to purchase these auxiliary materials and consumables and pay for them accordingly. These purchasing expenses increase the production costs of the enterprise and affect its profitability.

Third, inventory management costs

Enterprises need to store purchased materials in warehouses for production and sales. Warehousing costs, insurance costs and inventory depletion are all costs that businesses pay to maintain their inventory. These costs have a significant impact on the operations and financial flows of a business.

Dead, supply chain management costs

Supply chain refers to a series of activities and processes between raw material suppliers and final consumers. Enterprises need to invest human and material resources to manage the supply chain, including supplier selection, contract management, logistics and transportation. These supply chain management costs directly affect the enterprise's procurement costs and product quality.

Materials procurement cost control means

I, do a good job of materials procurement cost control of the groundwork

Materials procurement work high base involves a wide range of, and mainly with the merchants to deal with, so if the enterprise does not formulate a rigorous materials procurement system and program slag limb procedure, not only the procurement work is no chapter to rely on, will also provide procurement personnel with the temperature of the secret operation. Procurement staff to provide a hotbed of secret operation.

Two, the establishment of a sound internal accounting control system for materials procurement

Strict, perfect internal accounting control system for materials procurement, not only can regulate the material procurement activities of the enterprise, to ensure that the production and operation of the enterprise materials required for the normal and timely supply of business management to improve the efficiency of business management, to put an end to the Department of the tug-of-war between the shifting of responsibilities, and can be systematically regulate the day-to-day behavior of the purchasing staff to prevent illegal, unethical practices in the procurement process, and to prevent the procurement process. Prevent illegal, indiscipline and other bad behavior in the procurement process.

The internal accounting control system for procurement should stipulate the budget for material procurement, requisitioning, the approval authority of the authorized person, the process of material procurement, the responsibility and relationship between the relevant departments (especially the financial department), the provisions and methods of various material procurement, quotation and price approval, and so on.