Acquisition cost includes all of the costs that are normal and necessary to acquire and maintain a plant asset over its useful life.

Question

Quizplus · Accepted Answer

Acquisition cost refers to the costs incurred to acquire a plant asset and prepare it for its intended use, not the costs to maintain it over its useful life. Maintenance costs are considered operating expenses, not part of the acquisition cost.

Acquisition Cost Includes All of the Costs That Are Normal