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

Profit/ Loss and Profitability Cases

It seems to make sense to segment costs using the same criteria to segemnt markets. Has there ever been a case where this was not true?

2
5.7k
17
Be the first to answer!
Nobody has responded to this question yet.
Top answer
Anonymous A
on Dec 15, 2017

Use Fixed and Variabel instead.

2
Vlad
Coach
on Dec 21, 2017
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

If you are talking about asking the interviewer re the segmentation first - that is correct.

The particular cost structure may be segmented differently:

  • Fixed and variable
  • Per unit basis
  • Value chain
  • Any other structure that the interviewer may provide.

Ask about the cost structure proactively and then if the interviewer asks you to make a hypothesis re costs - use the most common FC / VC structure

Best

 
Similar Questions
Consulting
Question about
Revenue: usage of sold cars?
on Oct 26, 2024
UK
2
1.5k
39
2 Answers
1.5k Views
Consulting
Question about
Why is better profitable to produce cars in Italy instead of Slovakia? not sure Why
on Dec 01, 2024
Global
2
600+
13
2 Answers
600+ Views
Consulting
How should I approach structuring and presenting a profitability case ("root cause analysis")?
on Dec 12, 2024
Global
4
1.2k
21
4 Answers
1.2k Views
Consulting
Revenue streams and variable costs of an online travel rental company (like AirBnB)
on Dec 15, 2024
UK
4
1.2k
22
4 Answers
1.2k Views
Show more