Cost structures of a business model
A) define the types of income.
B) determine how much money is needed for positive cash flow.
C) drive the company's cost of goods sold and expenses.
D) are the most critical components for long-term success.

Question

Quizplus · Accepted Answer

Cost structures are the company's expenses and cost of goods sold that must be taken into consideration when creating a business model. It is important to determine the cost structure as it drives the company's expenses and ultimately affects the company's profitability. While determining the types of income and the amount of money needed for positive cash flow are also important components, they are not directly related to the cost structures of the business model. Additionally, while cost structures are important for long-term success, they are not the only critical components as other factors such as market demand, competition, and positioning are also important for success.

Cost Structures of a Business Model