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 |
|
|
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.
A: The time of payment is irrelevant in accrual accounting. All of January’s costs are included in January.

NEED HELP?
FOLLOW US