Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Interview Partners to connect and practice with!
Back to overview

Cost savings with upfront costs

The question asks you to calculate cost savings by switching a diesel vehicle to electric vehicle. They have given the new maintenance cost, efficiency costs and upfront/one-off costs for the electric vehicle. Can we add the upfront costs to the other 2 cost categories here? Do you ever add upfront costs to other cost categories or always treat it separately?

1
800+
6
Be the first to answer!
Nobody has responded to this question yet.
Top answer
Ian
Coach
on Jul 20, 2021
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi there,

Am I right in thinking this is Diesel Transportation Co from the Ross casebook? :)

You need to "normalize" the data. So, either upfront costs have to be turned into per unit costs, or your per unit costs need to be multiplied out by # of units to get the total new costs.

Ultimately, you have to compare apples to apples to understand the net cost savings.

Similar Questions
Consulting
Interview ended with only 2 case questions, Is this normal?
on Sep 06, 2024
USA
2
1.2k
43
2 Answers
1.2k Views
Consulting
APD McK final round - how bad was it?
on Sep 06, 2024
USA
4
1.4k
75
4 Answers
1.4k Views
Consulting
Struggling with Mental Math - Should I Give Up on Consulting?
on Sep 16, 2024
Europe
9
2.5k
116
9 Answers
2.5k Views
Consulting
Question about
N. of bottles sold after 5th year
on Oct 04, 2024
Asia
3
800+
57
3 Answers
800+ Views
Show more