When saleable goods or merchandise are bought in a business these are called purchases. Example. Stationery purchased by a stationer is called “Purchases” Cloth purchased by a cloth merchant is called “Purchases” Cement purchased by a cement dealer is called “Purchases” Types of Purchases. Purchases are of the following two types ...

Table 1-5 Different Types of Purchases Type of Purchase Description Examples Raw materials Items with a lack of processing by the s ... Petroleum, coal, lumber, copper, zinc, g ... Semi-finished products and components All items purchased from a supplier requ ... Components, subassemblies, assemblies, s ... Finished products Products for internal use or products th ... Furniture, computers, cars, and...