Articles on: Investment Glossary

Outlay Cost

An outlay cost is a cost incurred in order to execute a strategy or acquire an asset. Outlay costs are also paid to vendors to acquire goods such as inventory or services, such as consulting or software design. They are concrete expenses that are actually incurred in order to achieve a goal. 
For corporations, outlay costs for new projects include start-up, production, and asset acquisition costs.
Outlay costs do not include foregone profits or benefits—also known as opportunity costs. Total costs include both the outlay cost and opportunity cost.

Updated on: 24/04/2023

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