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?
(edited)
Profit/ Loss and Profitability Cases
2 answers
Use Fixed and Variabel instead.
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
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