The cost of any plant asset is the sum of all of the costs incurred to bring the asset to its intended use.

Question

Quizplus · Accepted Answer

This is a correct statement according to the accounting principle of cost accumulation. The cost of a plant asset includes all costs of acquisition, such as purchase price, transportation costs, installation costs, and any other necessary expenses incurred to make the asset operational.

The Cost of Any Plant Asset Is the Sum of All