Material is an object of work that is consumed either for production or for some other purposes, which serve for the proper functioning of the business. Material is an object of work, which is transformed into a finished product intended for sale by the work of people in the production process, by processing with means of work. The material used in the production process constitutes the basic substance of the subject of work and the highest value in the price structure of the product. Of the total costs, very often from 60 to 80% or even more is spent on the material. If the purchasing department succeeds in acquiring the material at favorable prices, this will be immediately reflected to the reduction of production costs and vice versa. Nevertheless, it does not mean that when purchasing, care is taken only about the price, and that other factors are neglected. Namely, the savings achieved on the price can turn into damage, if the purchased material does not meet the necessary conditions and then causes greater waste of production time or reduces the value of the product, that is, it causes a stoppage in production. taking into account some other factors, the quality and quantity of materials, delivery dates, etc. The possibility to reduce the cost of materials exists primarily in purchase prices, procurement and storage. Considering the increasing problems surrounding the procurement of materials, the purchasing department is becoming more and more important in achieving planned tasks, and especially in achieving a higher income. There are great opportunities for reducing the cost of materials at a lower purchase price. Savings are achieved here primarily by discovering new, more favorable sources of supply. Procurement at favorable prices also has an increased meaning when it comes to importing materials. Namely in that case, lower purchase prices not only reduce the cost price of the product, but also enable savings on foreign currency. It is also important what kind of material is procured. It is necessary to examine and determine several alternatives, in order to see if the same or better results can be achieved by replacing the material. However, the quality of the product should also be taken into account, especially when inferior material is used instead of better because it is cheaper. Sometimes the processing of inferior material costs the same, and sometimes even more, than the processing of good material. will perhaps be completely lost, if not for that, then in any case for the consumers of certain products. In the case of replacing materials, the question may arise whether it is better to use a larger amount of a cheaper or a smaller amount of a more expensive material to achieve the same use value. Savings on one factor it will represent irrationality if it results in a final price increase per product unit. The increased share of material costs, the cost price is partly influenced by the costs of transport and handling of the material. More expensive transport routes increase purchase prices, thus affecting the amount of total costs. Similar influence the costs also include extending the route along which it moves internal transport. Storage costs depend on the amount and type of space used for accommodation, but also on the frequent receiving and issuing of materials from the warehouse. Storage in open space is usually the cheapest, but only comes into consideration for a small number of types of materials. Higher storage costs caused by materials, which must be stored in covered and closed rooms. Correct placement of materials in the warehouse facilitates the necessary manipulations and affects the reduction of mold, cracks, breakdowns and breakages, and thus also the reduction of costs. taking into account the difficult situation of purchasing materials on the market. We are looking for material that is difficult to procure, with a longer delivery period or whose prices are higher than the price of other materials. In this case, the purchasing department, which is familiar with the situation on the market, suggests that in the procurement request, i.e. in the material specification, instead of one type or quality of material, and the second, that is to introduce alternatives, so that in given situations procurement could be contracted without the risk of extending the deadline. The same types of materials are purchased at different prices. Because of this, some difficulties arise when calculating the consumption of materials, if they are kept in stock at the actual purchase prices. There are several methods of calculating the consumption of materials, and the accounting of materials independently decides and chooses the calculation methods