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

Associated Practice