ACQUISITION COST

  1. A cost which a company gives recognition on its books for equipment or property after adjusting for incentives, closing costs, discount and other needed expenditures, but prior to sales taxes.

  2. A cost of the business in acquiring a new customer. The company acknowledge costs, such as incentives and marketing, in order to introduce news customers to the products and services of the company. The calculation for the customer acquisition costs is done by dividing the total acquisition costs by the total number of new customers over a certain time period.