Final answer:
The statement is true. Plant asset acquisition costs recorded in the company's records would include installation cost.
Step-by-step explanation:
The statement that plant asset acquisition costs recorded in the company's records would also include installation cost is true.
When a company acquires a plant asset, it not only incurs the cost of purchasing the asset itself, but it may also incur additional costs to get the asset ready for use. These additional costs, which may include installation, transportation, testing, and other related expenses, are known as capital expenditures. Capital expenditures are added to the cost of the plant asset and recorded in the company's records as part of the acquisition cost.
For example, let's say a company purchases a new manufacturing machine for $100,000. In addition to the purchase price, the company incurs $10,000 for installation and $5,000 for transportation of the machine to its factory. The total acquisition cost of the machine would be $115,000, which includes the purchase price, installation cost, and transportation cost.