The inflation is considered a great challenge to the economy of the most countries in the world, and that is because of its negative effects of the economic growth rate. This study investigates the impact of cost of production on the inflation in Syr
ian Arab Republic during the period (1996-2010) by using modern standard ways.
The results of this study showed that the reasons for increasing the inflation rate in Syrian economy are domestic intermediate goods and intermediate imported goods. Regression analysis has been used to estimate the effects of the output of the real wage and the cost of production on GDP implicit price deflator.
It has been concluded that the cost of production affects the implicit price deflator at significance level less than 0.05.
The goal of every industrial company is to develop and manufacture products that
suit the needs of the final customer, enabling it to market those products at a reasonable
and rewarding price. This research aims to show the importance of the adopti
on of the
quality factor in the acquisition of production requirements for equipment and machinery,
equipment and raw materials, and the statement of its significant role in reducing the cost
of production, and to make the company in a better position and ensure its survival and
continuity in the business world. The importance of this research also stems from the field
study carried out by the researcher on public industrial companies and identify the ways
and methods of purchasing, the conduct of their production, and the extent of the costs
borne by these companies to acquire better production requirements of machinery and
equipment and raw materials, and to address the main problems encountered. The most
important results obtained show that:
1.There is a crucial impact of the quality of production requirements on the cost of
production.
2. There is a crucial impact on quality cost and the improvement of financial returns.
