The decision to acquire a long-term asset is a complex process. The historical cost principle requires that companies record property, plant and equipment assets at their actual cost. So, what is cost? Cost consists of all expenditures necessary to acquire the asset and make it ready for its intended use.4 According to the historical cost principle, cost is the cash or cash equivalent price of obtaining the asset and bringing it to the location and condition necessary for its intended use5. So, pay attention to the expression “bringing it to the location and condition necessary for its intended use”. This means that the cost of the property, plant, and equipment assets does not only consist of the purchase price of the asset. Added to the purchase price cash or cash equivalent prices for transferring, installment, assembling, insurance during transfer, permits, etc. must be included. As can also be understood from the information given, the correct answer is D. The statements “Cost is the cash or cash equivalent price of obtaining the asset and bringing it to the location and condition necessary for its intended use.”, “The cost of the property, plant, and equipment assets does not only consist of the purchase price of the asset.” and  “Added to the purchase price cash or cash equivalent prices for transferring, installment, assembling, insurance during transfer, permits, etc. must be included.” are correct. The statement “Cost consists of some expenditures necessary to acquire the asset and make it ready for its intended use.” is not correct because cost consists of all expenditures necessary to acquire the asset and make it ready for its intended use.