cost structure


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.

Use cost structure in a sentence

I had a nice cost structure plan laid out to determine how things would be going and how we would implement our plan.

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The manufacturing of the water bottles had a deceptively complex cost structure and this was not factored in when gauging what their price should be.

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By moving its ,manufacturing plant to the Far East XYZ was able to decrease its cost structure significantly allowing it greater flexibility in pricing its products.

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