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?
A.
No, because overheads always decrease with inflation
B.
No, because a change in the buyer's specification could enable different machinery with a higher utilisation rate to be used
C.
Yes, because the cost of utilities will always increase.
D.
Yes, because the machinery and staff costs don't change over time
Chosen Answer:
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