Cost structure is related to an organization's proportions of fixed and variable costs.

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Cost structure refers to the relative proportions of fixed and variable costs that an organization incurs in producing its products or services. Fixed costs are those that do not vary with the level of production, such as rent, salaries, and insurance. Variable costs are those that change with the level of production, such as raw material costs and labor costs. An organization's cost structure can have a significant impact on its profitability and competitiveness.

Cost Structure Is Related to an Organization's Proportions of Fixed