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Using the information given above, describe the changes in cost structure which would have occurred at the company over the last 20 years, and explain their causes.
Before deriving the changes that would have taken place in the cost structure of the French pastry Company, it is important to understand what makes up the cost structure. Cost structure includes the various kinds of as well as comparative extents of variable and fixed costs, incurred by a business. The cost structure can be utilized as a tool for determining prices, in case the company uses the pricing strategy that is cost-based, and also to bring those areas into attention, where there can be possible cost reduction or can be at least controlled.
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