1. Change in basic purchase price of material.
  2. Change in quantity of purchase or uneconomical size of purchase order.
  3. Rush order to meet shortage of supply or purchase in less or more favourable market.
  4. Failure to take advantage of off – season price, the failure to purchase when price is cheaper.
  5. Failure to obtain cash and trade discounts or change in the discount rates.
  6. Weak purchase organisation.
  7. Payment of excess or less freight
  8. Transit losses and discrepancies if purchase price is inflated to include the loss.
  9. Change in quality or specification or materials purchased.
  10. Use of substitute material having a higher or lower unit price.
  11. Change in materials purchase, unkeep and store keeping cost (this is applicable only when such charges are allocated to direct material costs on a predetermined or standard cost basis.)
  12. Change in the pattern or amount of taxes and duties.
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