Cost of Cash

Cost of Cash is a term used in cash basis accounting that is the expenses associated with handling and managing physical cash in a business or financial context. The Cost of Cash represents the additional costs incurred by a company when dealing with cash transactions as opposed to electronic or digital payment methods. The Cost of Cash is the corporation's working capital in financing the project: 1) to be billed costs, 2) funds generated from billings and customer advances, less outstanding accounts receivable, and 3) funds used by project cost.

Related Definitions in the Project: The Project Cost