Cost Basis Total is a term used in business accounting that refers to the original value of an asset, including any associated costs. It’s important to know the cost basis total in order to calculate your financial gain or loss when you sell the item. Think of it as the starting point for any financial activity related to an item—if you’ve purchased something for $100 with an additional $50 for tax and shipping, your cost basis total would be $150. Understanding this concept is key for effective business budgeting and taxation. Knowing your cost basis total means that no matter what happens with the market value of your investments, you will always have a realistic understanding of your gains or losses.