LLM CFO

Cost metric definitions that survive audit

Updated: September 27, 2026

By the LLM CFO team

Ask three teams for cost per request and you will get three numbers. That is not a rounding disagreement; it is three different denominators, none of them written down. In a board pack the metric looks like a fact. In a cost review it turns out to be an opinion with a decimal point, and the exposure is that every optimisation decision taken on it inherits the ambiguity.

Four definitions worth fixing first

  1. Cost per request — state what a request is. An HTTP call, a user-visible turn, or a logical task that involved eleven calls. These differ by an order of magnitude on agent workloads, and the agent case is exactly where the number gets quoted.
  2. Cost per outcome — state the denominator's owner. Cost per resolved issue, per merged change or per approved claim. The denominator has to be something a business system already counts, or it will be quietly redefined whenever the number looks bad.
  3. Blended rate — state the mix. An average input rate is a weighted average across models and cache states. Report the mix alongside it, because a blended rate with an unstated mix cannot be reproduced.
  4. Savings — state the baseline and the period. A saving measured against a pre-optimisation month that happened to include an incident is not a saving. Name the baseline window in the number itself.

Why this is a control, not a documentation chore

A written definition is the cheapest control in AI cost management because it makes disagreement cheap. When the denominator is written down, a team arguing about a 20% improvement is having a real conversation about the work. When it is not, they are having a conversation about which definition to use, and that conversation is where optimisation spend goes to die.

It also survives contact with a vendor negotiation. A cost-per-outcome number with a written denominator is a number you can take into a renewal and hold a rate card against. A blended rate with no mix is not.

Keep the definitions boring

Four or five metrics, each one line long, each with a named source system and a named owner. Resist adding a sixth. Every additional metric is a definition to keep true, and a definition nobody owns is how a dashboard becomes a wall of numbers that nobody defends in a review.

Bottom line

Write the denominator, the mix and the baseline window next to every cost metric you report. It is the difference between a number that can be audited and one that has to be believed, and it costs an afternoon.

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