Final answer:
The assertion that acquisition cost encompasses all costs to acquire and maintain a plant asset over its useful life is false. Acquisition cost includes purchase price and any initial costs to bring the asset into operation, excluding maintenance costs which are expensed over the asset's life.
Step-by-step explanation:
The statement that acquisition cost includes all of the costs that are normal and necessary to acquire and maintain a plant asset over its useful life is False. The acquisition cost encompasses the purchase price and any additional costs required to bring the asset to a location and condition necessary for it to be capable of operating in the manner intended by management. However, the costs to maintain a plant asset (e.g., repair and maintenance expenses) over its useful life are not included in the initial acquisition cost; instead, these are expensed as incurred during the asset's operational life.
Furthermore, it is important to note that acquisition cost specifically relates to the initial costs to acquire an asset, not the ongoing costs associated with the use and maintenance of the asset.