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In business terms what do you call the money that you spend on materials and expenses?

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It depends on the purpose for which it was purchased.
If the material is for production it is termed as ' raw material '
If there are number of raw materials used in the production line then
raw material X' ' raw material y like that.

If the material is for office use like stationery - term it under stationery
if it is small quantity which will be used within this year term it as expenses.
It is grouped for our convenience to have management control and also to ascertain exact profit at the end of the year.

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Other Answers (2)

• Materials falls into the category of "Cost of Sales".
  
  Expenses is a bit of a general term. If you mean something like travel expenses they would usually appear as an overhead item but if you mean direct labour i.e. the labour used in production to actually produce components that would also fall under "Cost of Sales".
• Costs