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Margins, break-even & unit economics · Working

Cost of acquisition

Also called: acquisition cost

ELI5

Cost incurred to acquire an asset, company, customer or right; the object must be stated.

Used in conversation

“Keep cost of acquisition on the dashboard, but show the definition and reporting period beside it.”

Pitch context

You will see “Cost of acquisition” in financial models, budgets, board packs and investor materials when the discussion reaches margins, break-even & unit economics.

Why it matters: In margins, break-even & unit economics, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

When the words have to travel

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Sources & evidence · 4

Direct term-level sources and supporting source families.