Purchases can be categorized into several types, including:
Direct Purchases: Acquiring raw materials or components directly used in the production process. Indirect Purchases: Buying goods or services that support business operations but are not directly involved in production, such as office supplies or maintenance services. Capital Purchases: Investing in long-term assets like machinery, property, or technology. Operational Purchases: Procuring items needed for day-to-day operations, such as utilities and transportation services.