why is cost measurement is an important activity in purchasing management?

Answer 1

Its important because it will measure the available funds which you can earmark for other items. Plus, canvasing for good prices will help in the savings. But beware - not all cheap prices equate into good quality items. So you really have to be careful about purchasing things. On top of that, your schedule of expenses based on the cost measurements can tell you if your finances are in the red or if you have overshot your budgetary requirements per project or per department.