The cost structure of a business can be determined by identifying all the different costs incurred in conducting the business. These can include fixed costs, variable costs, and semi-variable costs. Fixed costs are costs that do not change with the level of output, such as rent or salaries. Variable costs change with the level of output, such as raw materials or direct labor costs. Semi-variable costs have elements of both fixed and variable costs, such as electricity bills. It's also important to consider direct costs, which can be directly attributed to the production of a product, and indirect costs, which cannot be directly linked to the production process.
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