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In: Accounting

In the discussion on cost breakdown analysis, you noted that the supplier's overhead allocation was 150%...

In the discussion on cost breakdown analysis, you noted that the supplier's overhead allocation was 150% of labor. At the time, you thought that was high in comparison to industry standard! Imagine you will be meeting with this supplier to discuss the supplier's proposed price increase. Develop a script (i.e., a game plan) for your conversation. How could you use this conversation to help reduce costs?

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Expert Solution

I have added few points in the scripts which would help in negotiating wih the supplier .

Please refer the attachment .


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