Insurance Policy Acquisition Costs

Definition of Insurance Policy Acquisition Costs

An acquisition cost, also referred to as the cost of acquisition, is the cost that a company recognizes on its books for property or equipment after adjusting for discounts, incentives, closing costs and other necessary expenditures but before sales taxes. Additionally, an acquisition cost can describe the costs accrued by a business in relation to the efforts involved in acquiring a new customer.

Insurance Policy Acquisition Costs Details