“Optimizing Cost Structure: A Strategic Approach to Minimizing Business Losses”

The cost structure of a business encompasses all types of expenses—both fixed and variable—that contribute to its total costs. By understanding their cost structure, companies can strategically set pricing and pinpoint opportunities for cost reduction.

Analyzing cost structure is crucial for comprehending how costs impact business operations. This process involves identifying all expenses, categorizing them as fixed or variable, calculating total costs, and then analyzing the findings to support more informed decision-making.