What is Cost Structure? - Definition, Types & Examples

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

How many major cost types do you have to consider when creating a cost structure?

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1. Which of the following cost types is the one where the costs don't change?

2. Justin has just opened a t-shirt company. Why is it important for him to create a cost structure for his business?

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About This Quiz & Worksheet

This quiz and worksheet combo will test your knowledge of cost structure creation. You will be asked about related considerations when creating a cost structure and why cost structure is necessary.

Quiz & Worksheet Goals

Answer these questions to be sure you understand:

  • The type of cost that does not change
  • Examples of variable costs
  • The number of cost types to consider before making a cost structure

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the material, such as the importance of creating a cost structure for a new business
  • Critical thinking - apply relevant concepts to examine information about cost structure creation in a different light
  • Information recall - access the knowledge you've gained regarding two cost types you have to keep in mind when creating a cost structure
  • Knowledge application - use your knowledge to answer questions about examples of fixed and variable costs

Additional Learning

Read the lesson titled What is Cost Structure? - Definition, Types & Examples to learn more about this type of accounting. You will explore topics like:

  • The benefits of running a cost analysis
  • Common types of expenses a business will have
  • Examples of effective cost structures
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