Acquisition Cost

It’s a calculated metric by a company to understand how much they spend on acquiring assets or customers.

Charged at: Acquisition cost isn’t charged “at” a specific point. It’s an accumulation of various expenses throughout the acquisition process.

Charged by: Similar to “charged at,” acquisition cost isn’t charged by anyone. It’s an internal calculation that considers various expenses incurred by the company.

Description: As explained earlier, acquisition cost refers to the total expense a company incurs to acquire an asset (property, equipment) or a customer.