• Acquisition cost refers to the amount paid for property, plant and equipment, the cost of acquiring a new customer or taking over a competitor.

  • It is useful in determining the full cost of property, plant and equipment as it includes items such as legal fees and commissions and excludes discounts and closing costs.
  • Acquisition costs are also useful for determining the total cost incurred in acquiring new customers and can be used to compare with the revenue generated from new customers.