Acquisition Cost

Acquisition Cost

It is a term used for investments and capitol purchases within a company and also is used as a term to describe investments made to acquire and retain customers.

Acquisition of hard goods or consumables is factored into a company’s financial statements to provide a more realistic view of the business’s overall success or where it may have to make adjustments. Therefore, monies spent for the sole purpose of growing a customer base should also be included in the overall category.

The real acquisition costs for building a customer base is calculated by dividing the money spent by the total number of customers acquired during a specified time frame. And in all cases, these expenditures are calculated to take into account related expenditures or deductions.

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