Hi,
May I know if I should use Fixed + Variable Costs or Direct + Indirect Costs for a manufacturing case under the cost bucket?
Thanks!
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Fixed + Variable Costs or Direct + Indirect Costs for a manufacturing case?
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Generally, neither.
Breaking down into FC/VC and DC/IC is a useless exercise that doesn't actually help you solve the case! If you want to break it down this way, sure, but it really doesn't add any value to just say “I want to break this down by FC and VC” like every other case 101 candidate out there!
Rather, take an objective-driven approach to segment out your costs in a logical way that will help you answer the question.
The approach yout ake depends entirely on the case provided and the clarifying questions asked/answered.
(editiert)
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Hi there,
You may use any of the two as they are both a MECE way to structure costs.
In the end, you should use the one that helps you to brainstorm more easily the costs for a particular case, as after that division you will have to identify costs for each category.
Best,
Francesco
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Will depend on the case & details given-so, you can use either.
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