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1 Purchasing Department
The purchasing department is the department which handles all the activities related to buying and selling of supplies and materials. It ensures the preparation of purchase orders, timely delivery of materials and also prepareation of purchasing list for the items to be purchased by the business. Its responibility includes the delivery of materials on time and also payment to suppliers on time. The department has to prepare the list of orders with the help of cost accounting for working closely with accounting department to ensure the sufficient capital to purchase the material. The purchasing department also ensures that the activities of buying and selling are complying with all company policies. It is also responsibile for evaluating the prices to receive the material and selection of the best possible price for the maximise profit. It is essential for the business to make sure that there is always sufficient products in the warehouses or on shelves to keep the store well stocked or to keep the factory going and customers happy. Purchase department plays an important role in the company that is why a good technical knowledge of the industry is required (McNally, Akdeniz, and Calantone, 2011)
Purchasing Material Cost
Material cost is the cost which is invested in the production of a product but excluding labour. It means the cost at which company purchases the material but excluding labour. Production department ensures quantity of material and refill of the same in time
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Well written and researched. I would never have chosen this topic but I thoroughly enjoyed reading the work. Very few amendments (American spelling vs British only which is a personal preference only and not a reflection on the work). Looking forward...