2. The cost of a business to acquire a new customer. The company recognizes costs, including marketing and incentives, to introduce new customers to the company's products and services. The customer acquisition cost is calculated by dividing total acquisition costs by total new customers over a set period of time.
Also known as "cost of acquisition."
1. 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.
2. Customer acquisition costs are also important for companies to measure, as it aids in planning future capital allocations to things like marketing budgets and sales discounts. The company should also look at customer loyalty and whether the company will be able to retain customers easily.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
acquisition cost — Refers to the price (including the closing costs) to purchase another company or property. Bloomberg Financial Dictionary In the context of investments, refers to price plus brokerage commissions, of a security, or the sales charge applied to… … Financial and business terms
acquisition cost — The average cost of acquiring a prospect or a customer. This is often calculated for setting marketing budgets in direct marketing. See allowable marketing cost … Big dictionary of business and management
acquisition cost — The purchase *price of an asset, service, legal right, or *entity … Auditor's dictionary
acquisition cost — noun : commissions and other selling expenses in insurance production … Useful english dictionary
acquisition cost of public sector entity assets — viešojo sektoriaus subjekto turto balansinė vertė statusas Aprobuotas sritis buhalterinė apskaita ir finansinė atskaitomybė apibrėžtis Suma, kuria turtas rodomas viešojo sektoriaus subjekto finansinės būklės ataskaitoje. atitikmenys: angl.… … Lithuanian dictionary (lietuvių žodynas)
Refiner acquisition cost of crude oil — The cost of crude oil, including transportation and other fees paid by the refiner. The composite cost is the weighted average of domestic and imported crude oil costs. Note: The refiner acquisition cost does not include the cost of crude oil… … Energy terms
customer acquisition cost — UK US noun [C] ► MARKETING the average amount a company spends to get each new customer, for example, by advertising: »Strategic partnerships can bring new customers, reducing customer acquisition costs … Financial and business terms
Subscriber Acquisition Cost — kurz SAC, bezeichnet die Summe der Einmalkosten zur Akquise eines Neukunden … Deutsch Wikipedia
U.S. refiner acquisition cost of imported crude oil — The average price paid by U.S. refiners for imported, that is, non U.S., crude oil booked into their refineries in accordance with accounting procedures generally accepted and consistently and historically applied by the refiners concerned. The … Energy terms
Traffic Acquisition Cost - TAC — Payments made by Internet search companies to affiliates and online firms that direct consumer and business traffic to their websites. Traffic acquisition costs (TAC) are a critical cost of revenue for Internet search firms such as Google, Yahoo… … Investment dictionary