Cost Total

Definition

The Cost Total KPI refers to the total amount of money spent in a set period in order to generate value.

Characteristics

Include	Don’t include
COGS Labour costs (see Cost Labour KPI) Material costs Marketing costs R&D costs Depreciation …	Taxes Interest payments Dividends paid

Calculation

+ marketing costs

+ labour costs

+ …

= Cost Total

Costs, Expenses, Spendings

–

Currency
(Euro / Dollar / YEN)

Example

A company sells furniture online. It has labour costs of 5.000 € and pays 1.000 € rent for the office and has marketing costs of 7.000 €.

+ 5.000 €

+ 1.000 €

+ 7.000 €

= 13.000 €

Q&A

Q: What if costs incur in January but I pay later on?
A: The time of payment is irrelevant in accrual accounting. All of January’s costs are included in January.