1. Finance
  2. Receivables & Payables

Operational Cost Per Collection


Determines the cost associated with each collection effort. Helps companies optimize their collection strategies and resources. High costs may suggest inefficiencies in the collections process.


Total Operational Costs / Number of Successful Collections


If total operational costs are $10,000 and there were 100 collections, operational cost per collection is 10,000 / 100 = $100.