A cost breakdown analysis is a four$-$step process comprising data collection, systematic expansion of the cost elements, determination of the cost drivers and the development of insights. Why is this analysis critical to supplier development?

a$.$ The knowledge gathered during the process enables companies to identify a supplier$$s strengths and weaknesses.

b$.$ The conclusion is found in the facts and information considered and analyzed by the buyer.

c$.$ The reasonableness of the cost can be checked against other purchases.

d$.$ Where an item has an established market price, verification of an equal or lower price also establishes the price to be fair and reasonable.