Finance Formulas / July 19, 2018 / Alia Marquez
Spreading the cost over multiple accounting periods helps provide a clearer picture of how your expenditures compare with your earnings. It also ensures that your accounting complies with federal rules for calculating depreciation.
Customer acquisition cost (CAC) is a metric that has been growing in use, along with the emergence of Internet companies and web-based advertising campaigns that can be tracked. Traditionally, a company had to engage in shotgun style advertising and find methods to track consumers through the decision-making process.
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