Cost structure analysis categorizes your costs to understand what drives spending and where you can optimize. Key distinctions: Fixed vs Variable, Direct vs Indirect, COGS vs OPEX.
Key Takeaways
- Fixed = doesn't change with volume. Variable = scales with revenue.
- COGS directly ties to product delivery. OPEX is everything else.
- High fixed costs = high break-even but better leverage at scale.
- Track cost categories monthly to spot trends early.