Cost Total

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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

 

Alias Costs/Expenses/Spendings
Abbreviation –
Unit 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.