Cost Structure Analysis

Cost Structure Analysis is the process of examining the different types of costs involved in running a business or project. It helps identify fixed costs (like rent and salaries), which remain constant, and variable costs (like materials and labor), which fluctuate with production levels. By understanding these costs, organizations can make informed decisions about pricing, budgeting, and improving profitability. This analysis is crucial for financial planning and helps businesses identify areas where they can reduce expenses or optimize resources. In essence, it provides insight into how costs impact overall performance and sustainability.