Cost Structures in Business
What is Cost Structuring? Cost structure is the aggregate of the various types of costs, fixed and variable, that make up a business' overall expenses . Companies use cost structure to set pricing and identify areas where expenses can be reduced. A cost structure is like a map that shows all the money a business spends when making things or offering services. It helps understand how these expenses affect how much money the business makes and how well it runs. Important parts of this cost map include things like what it costs to make the product or provide the service, how much money goes into running the business, and what affects how much profit is made. A cost structure delineates the range of expenditures a business encounters during the manufacturing of goods or provision of services. It serves as a framework for comprehending the financial components impacting profitability and operational effectiven...