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Definition
The cost structure is the accumulation of the fixed and variable costs, that make up a given product or service expense. Defining TCO (Total Cost of Ownership) cost structure and most impacting “cost drivers” will help companies:
To anticipate and identify profitability risks (e.g Energy price increase)
To set pricing policies (e.g passthrough in inflation context, contracts’ review clause…)
To prioritise and support cost reduction plan
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What is Cost Structure
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