The term "Cost Structure" refers to the various types of expenses a business incurs while operating. These costs can be categorized into fixed costs, which remain constant regardless of production levels, and variable costs, which fluctuate based on the volume of goods or services produced. Understanding the cost structure helps businesses manage their finances effectively and make informed pricing decisions. Analyzing the cost structure is crucial for business owners and financial analysts as it impacts profitability and sustainability. By identifying and controlling costs, companies can improve their overall efficiency and competitiveness in the market. This analysis also aids in strategic planning and resource allocation.