Acquisition cost should not include expenditures unrelated to the acquisition,like repair costs for damages incurred during installation,or costs incurred after the asset was installed and use begun.

Question

Quizplus · Accepted Answer

Acquisition cost only refers to the costs incurred during the acquisition of an asset, including purchase price and any directly related expenses such as delivery or installation costs. Any costs incurred after the asset has been installed and put into use, such as repair costs, should not be included in the acquisition cost.

Acquisition Cost Should Not Include Expenditures Unrelated to the Acquisition,like