The official business definition of Acquisition Cost is the total cost incurred by a company to acquire an asset. This cost includes the purchase price of the asset, any related costs such as taxes, shipping, and installation, and any other costs associated with the acquisition. It is important to note that the Acquisition Cost does not include any costs associated with the ongoing maintenance or use of the asset. This cost is used to calculate the depreciation of the asset over its useful life. It is also used to calculate the cost of goods sold, as well as the cost of inventory. Acquisition Cost is an important concept for businesses to understand and track, as it helps to ensure that the cost of acquiring an asset is accurately reflected in the company’s financial statements.