Outlay cost definition
/What is an Outlay Cost?
An outlay cost is any expenditure made to support an activity. The recognition of an outlay cost can be deferred in an accrual-basis accounting system, while the cost is recognized in a cash-basis system as soon as the supplier or employee is paid.
Examples of Outlay Costs
For example, the outlay costs for a research project may include wages, lab supplies and test services. Or, the outlay costs for a production run includes direct materials, indirect supplies, and direct labor. As another example, the outlay costs for a branding campaign may include the costs of advertising, designing artwork, and distributing direct mail pieces to the target market.