The cost structure of a business model
A)defines the types of income.
B)determines how much money is needed for positive cash flow.
C)drives the company's cost and expenses.
D)is the most critical component for long term success.

Question

Quizplus · Accepted Answer

The cost structure defines the company's cost and expenses, including fixed and variable costs, and is a crucial component in determining the profitability and sustainability of the business model. While income is important, without a solid understanding and management of expenses, a business may struggle to achieve positive cash flow and long-term success.

The Cost Structure of a Business Model