A buyer can use sources of information to review indirect costs associated with the manufacture...

Comprehensive and Detailed Explanation (from CIPS L4M2: Cost Management)

CIPS teaches that effective buyers conduct cost breakdowns that include both direct and indirect costs, using data from:

Supplier financial reports,

Benchmarking,

Industry cost models.

Thus, buyers can analyse indirect costs (e.g. overheads, utilities, admin) to strengthen negotiation positions.

Relevant CIPS L4M2 Sections:

Cost analysis and supplier price build-up

Using cost data to negotiate value