A buyer is reviewing the difference between the direct and indirect costs of a supplier's...

CIPS L4M2 Question Answer

A buyer is reviewing the difference between the direct and indirect costs of a supplier's production costs The buyer is unable to reduce the supplier's indirect cost for production. Is this statement true?

No, because overheads always decrease with inflation

No, because a change in the buyer's specification could enable different machinery with a higher utilisation rate to be used

Yes, because the cost of utilities will always increase.

Yes, because the machinery and staff costs don't change over time

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CIPS L4M2 Summary

Vendor: CIPS
Product: L4M2
Update on: Dec 16, 2025
Questions: 303

Price: $52.5 ~~$149.99~~

A "modified re-buy" means .

Despite of better improvement rates than other types of benchmarking, functional benchmarking still has downsides.

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A buyer is reviewing the difference between the direct and indirect costs of a supplier's...

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CIPS L4M2 Summary

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