What is Purchase Amount?
Purchase Amount
Money spent on purchasing materials.
What it means
The purchase price is the quantity received from the supplier multiplied by the purchase price. It is calculated as actually received, not as ordered.
Not all of the materials purchased are used in that month. What is not used remains in inventory.
At the pen factory
I bought 339,000 won worth of materials in November. Among them, about 160,000 won worth remains in the warehouse at the end of the month.
Why it matters
If you know where and how much you spend, you can see where to cut costs and where to buy less.