Total cost of acquisition (TCA) is a managerial accounting concept that includes all the costs associated with buying goods, services, or assets.[1]
Generally, it is the net price plus other costs needed to purchase the item and get it to the point of use. These other costs can include: the item's purchasing costs (closing, research, accounting, commissions, legal fees), transportation, preparation and installation costs.[2]
Typically they do not include training, system integration costs that might be considered operational costs.
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Episode 172: The Customer Acquisition Cost Formula
Transcription
See also
References
- ^ Standard definitions
- ^ Paquette, Larry, (2004). The Sourcing Solution. AMAMOC, New York, 109-115
External links
- Business Dictionary
- The Sourcing Solution, (Google books)
- Example of application of acquisition costs
This page was last edited on 9 February 2023, at 08:55