What are customer acquisition costs?

Acquisition costs encompass expenses for property or equipment, acquiring new customers, or taking over other firms. For fixed assets, acquisition costs include the purchase price, legal and regulatory fees, and commissions. Understanding customer acquisition costs is vital for efficient capital allocation and planning in marketing and sales.

What is the cost of acquisition in sales & marketing?

In sales and marketing, the cost of acquisition includes all the costs of acquiring new customers. As an accounting term, the cost of acquisition includes all upfront costs incurred when purchasing a business asset such as equipment or inventory. It includes the following:

What is the difference between acquisition cost and purchase cost?

Although generally, they may be equivalent, the acquisition cost includes other costs associated with an acquisition, in addition to the purchase price. In mergers and acquisitions (M&A), an acquiring company can completely absorb another company or can acquire a portion of another company by making a payment to the target’s shareholders.