Profit/ Loss and Profitability Cases

Question

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?

Answer 1

Use Fixed and Variabel instead.

Answer 2

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

Answer 3

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Answer 4

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Answer 5

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Hi Prayash, First of all, congratulations on proceeding further than the last time with BCG! I think this is an interesting question that may be relevant for many people. I woul... (read entire answer)