Global companies like Apple and Tesla can use cost pattern analysis to maximize their profits by better understanding their cost structure and identifying areas where costs can be reduced. This involves analyzing both variable and fixed costs. Variable costs change with the level of production, such as raw materials and labor costs. By analyzing these costs, companies can identify inefficiencies and make adjustments to improve profitability. Fixed costs, on the other hand, do not change with the level of production, such as rent and salaries. Analyzing these costs can help companies determine if they are over-spending in certain areas and where they can potentially save money. Furthermore, cost pattern analysis can help these companies set realistic production and sales goals.
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