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exercise1 min readLesson 7.9

Cost structure analysis

Finance — Read the Numbers · 20 min

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.