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cost structure

Definition

The expenses that a firm must take into account when manufacturing a product or providing a service. Types of cost structures include transaction costs, sunk costs, marginal costs and fixed costs. The cost structure of the firm is the ratio of fixed costs to variable costs.

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Historically Investing in Tech CompaniesIf you look at Cisco, Intel, Microsoft, Oracle or even a Google, there are so many forces working on hammering at their core business. And many of these upstarts have a much lower cost structure. Tryi ... Read more