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

IncludeDon’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.

Cost Total

Cost Labour

Net Cash Burn

Cash on Hand

Head-count

Custom KPIs