The cost structure lists what the business spends money on and how those costs behave as volume changes. Fixed costs hold steady; variable costs move with output. Some models are cost-driven, chasing the leanest possible base; others are value-driven, accepting higher cost to deliver premium outcomes.
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Understanding this shape informs pricing, break-even, and scaling decisions. It sits opposite the revenue side of the business model: together, cost structure and revenue streams determine whether the model is profitable and at what volume it turns.