How to measure cost per transaction?

CPT serves a crucial function in establishing pricing models for businesses. It is integral to determining the service fees that are charged to customers.

The process of calculating CPT involves taking into account all the transaction costs associated with operating a business. These costs can include various expenses such as labor, materials, overhead, and more.

Once all relevant transaction costs have been identified and summed up, the next step is to divide this total by the number of transactions that have occurred within a specified period. This period can be a day, a week, a month, or any other time frame that is deemed appropriate.

By dividing the total transaction costs by the number of transactions, businesses can obtain a per-transaction cost, which serves as the basis for setting service fees. This ensures that the fees charged are reflective of the actual costs incurred in processing each transaction.

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