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Fixed + Variable Costs or Direct + Indirect Costs for a manufacturing case?

case structure Case structure and frameworks Profitability Case Cost Structure Structure
Question edited on Aug 10, 2021
The best answer (on Aug 10, 2021) is from:
Ian
Expert
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Ian
Expert
gave the best answer on Aug 10, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
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 ... (read entire answer)
3
Answers
665
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21
Total Upvotes
on Aug 10, 2021 on Aug 10, 2021
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How to Structure and Choose Framework for Profitability Case

Case Interview Case structure and frameworks Framework profitability profitability analysis Profitability Case Cost Structure
Most recent answer on Aug 18, 2020
The best answer (on Apr 18, 2019) is from:
Ian
Expert
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Ian
Expert
gave the best answer on Apr 18, 2019
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi, Given this is your first day, I'm going to take a step back and answer the question you're really asking: How do I use frameworks in a case? If there's anything to remember in this process, is that cases don't e ... (read entire answer)
4
Answers
2.4 k
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13
Total Upvotes
on Aug 18, 2020 on Aug 18, 2020
Last Activity

In Profitability cases, when analyzing the cost side, how to decide the cost structure breakup?

cost structure Profitability Case Cost Structure profitability cost reduction
Most recent answer on Oct 02, 2019
The best answer (on Oct 02, 2019) is from:
Daniel
Expert
McKinsey / ex-Interviewer at McKinsey / I will coach you to rock those interviews
Daniel
Expert
gave the best answer on Oct 02, 2019
McKinsey / ex-Interviewer at McKinsey / I will coach you to rock those interviews
In my experience as an interviewer most of the time it doesn’t matter how you will divide the costs. What matters is breadth and depth of how you approach the problem. What do I mean by that? Let’s take an example of ... (read entire answer)
2
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2.5 k
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14
Total Upvotes
on Oct 02, 2019 on Oct 02, 2019
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Chewing Gum Profitability Case

Case Case Interview case study Profitability Case Cost Structure
Recent activity on Aug 27, 2018
Anonymous A asked on Aug 16, 2018
Dear all, I have three questions about the cost branch of the profitability framework. The first two questions are related to the Chewing Gum Case (see https://www.preplounge.com/en/management-consulting-cases/cand ... (read entire question)
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3.5 k
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on Aug 27, 2018 on Aug 27, 2018
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