acquisition cost

USAGE SUMMARY

The phrase "acquisition cost" is correct and usable in written English.
It is typically used in business and finance contexts to refer to the total cost incurred to acquire an asset or a product. Example: "The acquisition cost of the new software included licensing fees, installation charges, and training expenses."

✓ Grammatically correct

Formal & Business

News & Media

Science

Human-verified examples from authoritative sources

Exact Expressions

58 human-written examples

That leaves $2.64 to cover postage, acquisition cost and overhead.

The Guardian - Books

Just to point out that the Gateway acquisition cost £350m and completed in October 2007.

The Guardian - Tech

Then compare the CLV of the prospective customer to her estimated acquisition cost.

Massachusetts Institute of Technology

The balance of the acquisition cost is $15 million for new capital investement and operations.

The New York Times

Can the company articulate and compare the lifetime value and acquisition cost of each customer?

Harvard Business Review

The announcement said that $552 million of the acquisition cost would involve external financing.

The New York Times

The fees would inflate his company's customer acquisition costs, he said, "and customer acquisition cost is the Rosetta stone of this whole model".

The New York Times

When subtracting acquisition costs before reporting CLV, you do not report the current value of the company's customers but their value less acquisition cost.

Massachusetts Institute of Technology

Customer acquisition cost (CAC).

TechCrunch

Human-verified similar examples from authoritative sources

Similar Expressions

2 human-written examples

Look for ways to reduce acquisition costs.

Harvard Business Review

The pro forma loss excludes approximately $75 million in acquisition costs.

The New York Times

Expert writing Tips

Best practice

When analyzing financial performance, clearly distinguish between "acquisition cost" and ongoing operational costs to provide a transparent view of profitability and return on investment.

Common error

Don't limit your financial evaluations to just the "acquisition cost". Factor in maintenance, upgrades, and disposal expenses to determine the total cost of ownership over the asset's lifecycle.

Linguistic Context

The phrase "acquisition cost" functions primarily as a noun phrase. It typically identifies the expense related to obtaining an asset or service. Ludwig's examples confirm its usage across diverse contexts, consistently denoting initial expenses.

Expression frequency: Very common

Frequent in

Formal & Business

33%

News & Media

33%

Science

33%

Less common in

Academia

0%

Wiki

0%

Encyclopedias

0%

Ludwig's WRAP-UP

The term "acquisition cost" is a widely used and grammatically sound phrase that describes the initial expense of obtaining an asset or service. Ludwig AI confirms its common usage across various professional, news, and scientific contexts. When writing about financial matters, it's crucial to use "acquisition cost" accurately and distinguish it from the total cost of ownership. Related phrases like "procurement expenses" and "purchasing price" can serve as effective alternatives depending on the specific context. Understanding this term is essential for clear financial reporting and effective business communication.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

procurement expenses

Replaces "acquisition" with "procurement" focusing on the act of obtaining goods or services.

purchasing price

Substitutes "acquisition" with "purchasing", highlighting the act of buying.

initial investment

Focuses on the money spent at the beginning to obtain something.

start-up costs

Highlights the expenses involved in initiating a project or business.

set-up charges

Emphasizes the fees associated with the initial arrangement or preparation.

implementation expenses

Focuses on costs tied to putting a plan or project into effect.

capital outlay

Indicates a significant expenditure of money, especially for fixed assets.

investment expenditure

Highlights the spending related to investments.

cost of gaining

Simple rephrasing, focusing on the cost associated with gaining access to something.

expense of obtaining

Focuses on the expenditure required to get something.

FAQs

How is "acquisition cost" used in financial statements?

In financial statements, "acquisition cost" is typically used to record the initial cost of an asset. This includes the purchase price plus any costs necessary to get the asset ready for its intended use.

What's the difference between "acquisition cost" and life cycle cost?

"Acquisition cost" refers to the initial expense of obtaining an asset, while life cycle cost encompasses all expenses related to the asset over its entire lifespan, including maintenance, operation, and disposal. Understanding both is vital for financial planning.

What are some strategies for reducing "acquisition cost"?

Strategies for reducing "acquisition cost" include negotiating with suppliers, exploring leasing options, and optimizing procurement processes. Also, consider alternatives like "bulk purchasing" or "strategic sourcing".

How does "acquisition cost" impact customer lifetime value?

The "acquisition cost" is a key factor in calculating customer lifetime value (CLTV). Lowering the "acquisition cost" while maintaining customer retention boosts profitability and increases CLTV. It's important to balance marketing spend with customer acquisition efficiency.