Cost Structure
Definition
Proportion of various expenses in tape production.
Historical Background
1980s: cost management technology enabled precise accounting.
Example
Raw materials, labor, equipment depreciation, energy. Like an itemized bill.
Formula
Total Cost = Raw Materials + Labor + Equipment Depreciation + Energy + Overhead
Core Concepts
Profit analysis foundation: raw materials typically 50-70% of total cost.
Extended Applications
Raw materials: 50-70%; labor: 10-15%; equipment: 5-10%; energy: 5-8%; overhead: 5-10%; sales: 3-5%; finance: 2-3%.