840-423 · Question #16
What is the definition of "Cost Structure" in the Business Model Canvas?
The correct answer is A. Cost of performing all business activities. Cost Structure in the Business Model Canvas refers to all costs incurred to operate a business model - meaning every expense required to make the entire business work, which is why A is correct. Options B, C, and D are wrong because they each isolate a single department (IT…
Question
What is the definition of "Cost Structure" in the Business Model Canvas?
Options
- ACost of performing all business activities
- BCost of performing IT activities
- CCost of performing HR activities
- DCost of performing purchasing activities
How the community answered
(26 responses)- A88% (23)
- B8% (2)
- C4% (1)
Explanation
Cost Structure in the Business Model Canvas refers to all costs incurred to operate a business model - meaning every expense required to make the entire business work, which is why A is correct.
Options B, C, and D are wrong because they each isolate a single department (IT, HR, purchasing), whereas Cost Structure is deliberately holistic - it captures every category of cost across value creation, delivery, customer relationships, and beyond, not just one function's budget.
Memory tip: Think of the Business Model Canvas as a complete blueprint of a business. Every other block (Key Activities, Key Resources, Partnerships, etc.) generates costs - so Cost Structure must be the umbrella that covers all of them, not just one slice.
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