What is a Cost Structure?
There’s the set up cost obviously, that everybody has to pay. And there’s the recurring cost; memberships, you know, printing costs and all these things, and there’s a huge liability cost. I come from Florida so south Florida has huge liability problems. And then there’s monopoly costs, which is sort of hidden, that comes from patents and all these things. And so monopoly is something which we are very much concerned about; that is, I agree 100 percent should have intellectual property rights and they should make a living for that, but it’s a source of unknown cost. And laws, rules and regulations spawn off liabilities, lawsuits and whatnot. And the standards are something that industry and government sponsored, gives us a guideline. But it can also become an uncontrolled cost if it’s not managed properly. And the experience at the hospitals, we have done many of our code, passive RFID, 2D bar code and active RFID. So active RFID and 2D bar code, one of the reasons we got into 2D bar c
Cost structures are simply the identification of how costs associated with the production of a good or service are distributed throughout the process. While some think of a cost structure as referring only to the finances utilized in the production process, a true cost structure will also take into consideration the use of all types of resources along the way. This can include costs such as labor and utilities, as well as back end costs like sales and marketing expenses. When attempting to create a reasonable picture of the cost structure associated with the production of any type of good or service, the first step is to understand each individual step that occurs. This begins with the development of the idea for the product, the acquisition of raw materials, and the creation of production facilities that are used to create the end product. At the same time, a cost structure will address all labor costs associated with each step. This will include not only the expense of wages and sala
