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
5.6k
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
How strictly should I commit to being objective orientated?
on Apr 26, 2025
Global
7
300+
Top answer by
Daniel
Coach
Ex-McKinsey, Bain & Kearney | 5+ yrs consulting, coaching & interviewing | 95%+ candidate success
16
7 Answers
300+ Views
+4
Consulting
Framework for Increasing Profits?
on Apr 18, 2025
Global
6
200+
Top answer by
Hagen
Coach
#1 recommended coach | >95% success rate | 8+ years consulting, 8+ years coaching and 7+ years interviewing experience
11
6 Answers
200+ Views
+3
Consulting
How should I explain a change in course at university? Will it be asked of me?
on Apr 14, 2025
Global
10
3.7k
Top answer by
Alessa
Coach
xMcKinsey & Company | xBCG | +200 individual & group coachings | feel free to schedule a 15 min intro call for free
81
10 Answers
3.7k Views
+7
How likely are you to recommend us to a friend or fellow student?
0 = Not likely
10 = Very likely
Thanks for your feedback! Your opinion helps us make PrepLounge even better.