CBAP v3 Strategy Analysis 2025 – 400 Free Practice Questions to Pass the Exam

The term that refers to the various components contributing to the expenses of a product, service, or change initiative is "cost structure." The cost structure encompasses all the different costs involved in producing a good or service, including fixed and variable costs, direct and indirect costs, and overhead expenses. Understanding the cost structure is crucial for businesses as it helps them determine pricing strategies, identify cost-saving opportunities, and assess the financial viability of a product or service.

In contrast, an expense report generally details expenses incurred by employees in a business context, rather than focusing on the broader financial components of a product or service. A financial statement provides an overview of an organization's financial status but does not specifically dissect the components of costs associated with individual products or services. On the other hand, a budget framework represents the planning aspect of finances, detailing how resources will be allocated in the future, rather than focusing on the actual expense components related to a specific initiative. Therefore, "cost structure" is the most appropriate term in this context.