Cost structure refers to the expenses that a company bears while operating its business model. It includes all the costs that the company has to pay to create and deliver its value proposition to the customers.

Cost structure can include various types of costs, including:

• Fixed costs like rent, salaries, and equipment
• Variable costs like raw materials and shipping costs
• Other expenses like marketing, research, and development

The cost structure of any company will depend entirely on the rest of the building blocks of the Business Model Canvas. For example, if a company chooses to prioritize offering a premium product or service, the cost structure will include higher expenses for high-quality materials, top-tier talent, and specialized equipment, while other expenses like advertising and promotions may be lower in order to maintain a higher profit margin.

Expenses like taxes are also generally not detailed in the BMC as the model focuses more on the operational, production, and direct costs associated with delivering the business's value proposition.