Rise2040

Cost drivers directly influence product pricing, customer profitability and make vs buy decisions

Example: If logistics cost is driven by number of deliveries but allocated on sales value, high-frequency customers look profitable when they are actually loss-making

Cost drivers are important, as is the value proposition - perceived value can (but not exclusively) be a factor of cost influencing product pricing. You need to also consider the impact of the % of variable vs fixed direct/indirect costs and opex allocation to get a truer view.