acquisition cost definition
DEFINITION of 'Cost Of Acquisition'. A business sales term referring to the expense required to attain a customer or a sale. In setting a marketing and sales strategy, a company must decide what the maximum cost of acquisition will be, which effectively determines the highest amount the company is willing to spend to attain each customer. Next Up. Additionally, an acquisition cost can describe the costs accrued by a business in relation to the efforts involved in acquiring a new customer. In email marketing, the acquisition cost or cost of acquisition is the actual cost of generating one single lead, new subscriber or customer. The acquisition cost is usually determined by dividing the total cost of a single e-mail marketing campaign by the number of leads, subscribers or customers. PREVIOUS. acquiring bank. Total cost of acquisition. Total cost of acquisition (TCA) is a managerial accounting concept that includes all the costs associated with buying goods, services, or assets. Generally, it is the net price plus other costs needed to purchase the item and get it to the point of use. Acquisition costs recognize more realistic costs on a company's financial statements. The acquisition cost of property and equipment recognizes any discounts or additional costs that the company will experience and is often referred to as the book value of the asset in question. What is an 'Acquisition Cost'. An acquisition cost, also referred to as the cost of acquisition, is the cost that a company recognizes on its books for property or equipment after adjusting for discounts, incentives, closing costs and other necessary expenditures but before sales taxes. Total cost of acquisition. From Wikipedia, the free encyclopedia. Total cost of acquisition (TCA) is a managerial accounting concept that includes all the costs associated with buying goods, services, or assets. Generally, it is the net price plus other costs needed to purchase the item and get it to the point of use. Cost Of Acquisition. A business sales term referring to the expense required to attain a customer or a sale. In setting a marketing and sales strategy, a company must decide what the maximum cost of acquisition will be, which effectively determines the highest amount the company is willing to spend to attain each customer. (Learn how and when to remove this template message) Customer Acquisition Cost is the cost associated in convincing a customer to buy a product/service. This cost is incurred by the organization to convince a potential customer. This cost is inclusive of the product cost as well as the cost involved in research, marketing, and accessibility costs. This is an important business metric. The most popular Webopedia definitions of 2015. Java is a high-level programming language. This guide describes the basics of Java, providing an overview of syntax, variables, data types and... This second Study Guide describes the basics of Java, providing an overview of operators, modifiers and control Structures.
It is the cost that a company recognizes on its books for property or equipment after adjusting for discounts, incentives, closing costs and other necessary expenditures but before sales taxes.