Is marketing a fixed or variable cost?
What about equipment? Can it be considered a fixed cost, or should it rather be considered a capital expenditure? Or is the maintainance of equipment fixed costs and investment in new equipment a capital expenditure? Can IT costs be considered the same way?
Can someone explain what admin costs comprises of?
Hi Elias, I have a question to your comment. If I understood you correctly, for a case dealing with an investment decision we would divide costs in Capex and Opex? (see Innogy Case) In terms of a profitability case we would analyze the cost structure in fixed and variable costs in oder to identify potential cost decrease measure or revenue growth potentials?
(editiert)
Hi Lukas, in a profitabilty case you might get away with ignoring capex and stopping at EBITDA. Once you want to get to EBIT you obviously need the values for depreciation. For an investment decision you definitely do need capex. But remember that an investment decision is in essence a multi-year profitabilty case. So the (discounted) profits (Cash Flows, to be more precise, so use EBITDA as a cash flow proxy) accumulated over the lifetime of the asset should exceed the investment. If not, it's a bad investment...