Cost analysis

You have to look at both! Depending on the context, most strategic problems require investments (Capex) which need to be recouped by operational profits (Revenue - Opex). The Operational Costs (Opex) then can be disaggregated either by fixed & variable costs, or along the value chain, or both (like a matrix). What makes sense in the particular situation is mainly governed by the kind of data available.

Cheers, Sidi

Hi,

It depends on whether you are having investments in your case. In real life, most of the businesses have some Capex. Cases are usually simplified and you'll have fixed and variable costs unless the case assumes the investments. Then you should look at capex and opex (fix+var)

Best