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Investments glossary

Outlay Cost


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Quotes of the day:

Not all treasure is silver and gold, mate.

— Johnny Depp, Pirates of the Caribbean

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 like consulting or software design. They are concrete expenses which are actually incurred in order to achieve a goal. Outlay costs are easy to recognize and measure because they have actually been paid to outside vendors, as opposed to opportunity costs which are not actually incurred and paid to outside parties by the company. For corporations, outlay costs for new projects include start-up, production, and asset acquisition costs. They can also include hiring costs for strategies or projects that require an addition to the workforce in order to be carried out.

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