why a deep understanding of costs is crucial
The importance of costs is often underestimated in business decisions. Also, candidates tend to consider them as simple and intuitive. Costs in themselves are not a difficult concept, but identifying the best cost structure and projecting its long term implications can be a daunting challenge. After all, an unsustainable cost structure is the main reason why companies end up going out of business. And not surprisingly, many consulting projects end up being about reducing and managing costs.
We structured this chapter in two sections:
- ESSENTIALS: Key concepts and implications of cost structure all candidates should be familiar with. While most candidates have a basic grasp of the basics, we constantly find out that very few are aware of the implications of different cost structures on present and future profitability
- ADD-ONS: Additional concepts all interviewers should be familiar with by their interview day, but not essential to start practising. We suggest going through them after some practice and with a solid understanding of the ESSENTIALS
We strongly suggest you bookmark this page, since it is the most comprehensive resource on cost structure you can find on the market.
Just click on the concept you want to expand to learn more!
Essentials
Add-ons