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Ask for Costs and Revenues

costs revenues

Most recent answer on Nov 13, 2023

Clara

Expert

McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Clara

Expert

gave the best answer on Nov 13, 2023

McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello! Precisely for the high amount of questions (1) asked by my coachees and students and (2) present in this Q&A, I created the “Math & Formulas - Economic and Financial concepts for MBB interviews”, recently ... (read entire answer)

2
Answers

2.4 k
Views

13
Total Upvotes

on Nov 13, 2023 on Nov 13, 2023
Last Activity

Framework for brainstorming ideas for cutting department costs (IT and Marketing)

cost structure costs profitability analysis

Most recent answer on Aug 08, 2023

gave the best answer on Aug 05, 2023

Hi Emma, Wherever possible try to avoid fixed and variable costs - interviewers want to shoot themselves when they hear this! Option 1: People IT/Tech/Systems NOT Process (doesn't apply here…it's linked with systems) == ... (read entire answer)

4
Answers

534
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33
Total Upvotes

on Aug 08, 2023 on Aug 08, 2023
Last Activity

Banking - fixed and variable costs

Banking costs fixed costs variable costs

Most recent answer on Aug 30, 2022

Lucie

Expert

10+yrs recruiting & BCG Project leader

Lucie

Expert

gave the best answer on Aug 20, 2022

10+yrs recruiting & BCG Project leader

Hi there, I am not banking expert, but I would guess banking has probably very low variable cost and high fix cost and it declines with scale. I guess most cost can be saved with AI and digitalization, allowing banks t ... (read entire answer)

6
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3.5 k
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25
Total Upvotes

on Aug 30, 2022 on Aug 30, 2022
Last Activity

Looking for exciting discussions from the community?

Objective = Generate more money

costs profitability Revenue analysis

Question edited on Aug 28, 2022

Sidi

Expert

McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers

Sidi

Expert

gave the best answer on Aug 28, 2022

McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers

Hi! I believe you confuse the objective with the case question! "Investing 5m $ in his business" is not the objective! It is most probably the starting point of the question (e.g., "Should our client invest the 5m $ in ... (read entire answer)

3
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1.1 k
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53
Total Upvotes

on Aug 28, 2022 on Aug 28, 2022
Last Activity

Copyrights - fixed or one-time cost

costs

Most recent answer on Jul 04, 2021

Francesco

Expert

#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching

Francesco

Expert

gave the best answer on Jul 03, 2021

#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching

Hi there, In most countries you don’t have to pay for copyrights – they are automatic and apply as soon as the work is published. Most copyrights last for decades – those on books for example last 70 years after the ... (read entire answer)

4
Answers

658
Views

48
Total Upvotes

on Jul 04, 2021 on Jul 04, 2021
Last Activity

Cost Structure of Banks?

Banks case structure costs Structure

Most recent answer on Mar 11, 2020

Francesco

Expert

#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching

Francesco

Expert

gave the best answer on Mar 11, 2020

#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching

Hi Anonymous, fix and variable is a feasible way to divide costs for a bank. You may also use other ways (eg value chain or operational functions), the important thing is that: Your division is MECE Your divisio ... (read entire answer)

6
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2.0 k
Views

5
Total Upvotes

on Mar 11, 2020 on Mar 11, 2020
Last Activity

When should I break down costs as Fixed and Variable as opposed to over the value chain?

Bain & Company BCG Case Interview caseinterview cost structure costs MBB McKinsey

Most recent answer on Feb 29, 2020

gave the best answer on Feb 11, 2020

It's not necessarily an and/or. When thinking about FC and VC you should also be thinking about the value chain. For example:Raw Mats (VC) and R&D (FC) are at the beginning of the chain. Labour (FC or VC), electri ... (read entire answer)

8
Answers

3.4 k
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8
Total Upvotes

on Feb 29, 2020 on Feb 29, 2020
Last Activity

Airlines cost segmentation

airline Airline Economics costs fixed costs segmentation variable costs

Most recent answer on Feb 28, 2020

Luca

Expert

BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached

Luca

Expert

gave the best answer on Feb 28, 2020

BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached

Hello Theo, Thi is fine, but consider that the differentiation between fixed and variable costs is fundamental when you have to do some considerations involving variable volumes. Best, Luca

6
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2.5 k
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10
Total Upvotes

on Feb 28, 2020 on Feb 28, 2020
Last Activity

Can someone explain cost based pricing vs value based pricing?

costs

Most recent answer on Sep 09, 2019

Vlad

Expert

McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Vlad

Expert

gave the best answer on Sep 09, 2019

McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi, 1. Cost based - you actually check what are the costs and apply standard industry / target markup 2. Value based pricing is based on the customer willingness to pay and can be done in 2 ways: For existing pr ... (read entire answer)

1
Answer

1.5 k
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1
Total Upvotes

on Sep 09, 2019 on Sep 09, 2019
Last Activity

What are the typical cost drivers?

Case Interview costs MBB

Recent activity on Apr 20, 2019

Anonymous gave the best answer on Apr 20, 2019

You can check these discussions: https://www.preplounge.com/en/consulting-forum/where-to-include-investment-cost-in-structure-2651 https://www.preplounge.com/en/consulting-forum/any-tips-when-drawing-a-pl-and-cost- ... (read entire answer)

2
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3.8 k
Views

9
Total Upvotes

on Apr 20, 2019 on Apr 20, 2019
Last Activity

Ask for Costs and Revenues

costs

Recent activity on Oct 15, 2018

Anonymous A asked on Oct 12, 2018

Hi! Often in a case you encounter a situation where you have to ask for the costs or revenues. What is the best approach for doing this? Is it ok to just ask right out: Do you have any information about the cost/reven ... (read entire question)

1
Answer

2.3 k
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0
Total Upvotes

on Oct 15, 2018 on Oct 15, 2018
Last Activity

Classifying Costs

costs fixed costs

Recent activity on Oct 12, 2018

Anonymous gave the best answer on Oct 12, 2018

Hi, very often in these questions, people seem to confuse the nature of costs (fixed or variable) with the distinction between investment and costs (and cash out, which is a topic for another post). So: Capital ... (read entire answer)

4
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3.2 k
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1
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on Oct 12, 2018 on Oct 12, 2018
Last Activity

Do you have a question for our consulting experts, too?

Structure of costs in profitability cases: OPEX & CAPEX vs Fixed costs and variable costs

cost structure costs

Recent activity on Oct 09, 2018

Dennis

Dennis gave the best answer on Oct 09, 2018

Here is my take: The case you are referring to is a question on whether or not to invest; so it's not a pure profitability problem. You want to analyse whether it is good to switch to Smart Meters so your strategy sho ... (read entire answer)

2
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8.9 k
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3
Total Upvotes

on Oct 09, 2018 on Oct 09, 2018
Last Activity

Where to include investment cost in structure

costs Investment

Recent activity on Oct 09, 2018

Sidi

Expert

McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers

Sidi

Expert

gave the best answer on Oct 08, 2018

McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers

I would never put investment together with operational costs! Simply because it's entirely different categories. The truth is, many candidates struggle to conceptually separate investments from fixed costs: Investme ... (read entire answer)

3
Answers

2.5 k
Views

5
Total Upvotes

on Oct 09, 2018 on Oct 09, 2018
Last Activity

Structure in profitability case

costs profitability

Recent activity on Aug 17, 2018

Anonymous gave the best answer on Aug 17, 2018

In this case, fixed & variable costs are MECE for the reasons below. Fixed costs are costs incurred by the business whether they produce 0units or 1million units. Yes, the more units they create, then logically fi ... (read entire answer)

2
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2.3 k
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5
Total Upvotes

on Aug 17, 2018 on Aug 17, 2018
Last Activity

Consultants - What GENERALLY is the culprit for low /declining profits?

costs engagement profit projects revenues

Recent activity on May 04, 2018

Francesco

Expert

#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching

Francesco

Expert

gave the best answer on May 04, 2018

#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching

Hi Anonymous, there is no general answer for this – it could be either of the options. Also, even if there was a most common type, it would not make sense to consider it as starting point without any further check. Th ... (read entire answer)

2
Answers

2.6 k
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2
Total Upvotes

on May 04, 2018 on May 04, 2018
Last Activity

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Consulting Q&A – Ask Questions about Your Career

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