Relative Cost Analysis

Publish date: 2024-05-06

Relative Cost Analysis

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This Interactive Illustration compares the relative average costs of each activity that Collins Kitchen and three competitors pay to manufacture, distribute, and sell a typical package of snack cakes, and it shows the percentage of costs that these activities contribute to total costs.

Cents per Unit

Percent of Total

Build Clear

Source: Adapted from Pankaj Ghemawat and Jan W. Rivkin, "Creating Competitive Advantage," HBS No. 798 062, Boston, MA: Harvard Business School 1998.
Copyright © 1998 by the President and Fellows of Harvard College. Reprinted by permission.

© 2013 Harvard Business School Publishing. Harvard Business Publishing is an affiliate of Harvard Business School.

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