Total cost of acquisition

The Total Cost of Acquisition (TCA) is a managerial accounting concept that includes all the costs associated with buying goods, services, or assets.^[1]

Generally, it is the net price plus other costs needed to purchase the item and get it to the point of use. These other costs can include: the item's purchasing costs (closing, research, accounting, commissions, legal fees), transportation, preparation and installation costs.^[2]

Typically they do not include training, system integration costs that might be considered operational costs.

See also

• Total cost
• Total cost of ownership
• Procurement
• Acquisition process in purchasing
• US Government acquisition process

References

1. ↑ Standard definitions
2. ↑ Paquette,Larry, (2004).The Sourcing Solution. AMAMOC, New York, 109-115

External links

• Business Dictionary
• The Sourcing Solution, Google books)
• Example of application of acquisition costs