This stands for Customer Acquisition Cost. This means how much it costs a company to get one new customer to use or buy their product or service.
To find this you get the sales and marketing costs, which is the cost of advertisements and salaries of your salespeople. Then you divide that number by how many new people you got with the money you spent on sales and marketing.
Customer Acquisition Cost = Sales and marketing expense/ Number of New Customer’s
Example – $36000 / 30 New Customer’s = $1200 for 1 Customer.