cost principle applies to plant assets
Study Objective 1 - Describe how the Cost Principle Applies to Plant Assets. Plant assets are resources that have physical substance (a definite size and shape), are used in the operations of a business, and are not intended for sale to customers.f a cost is not included in a plant asset account, then it must be expensed immediately. Such costs are referred to as revenue expenditures. Costs that are not expensed immediately, but are instead included in a plant asset account are referred to as capital expenditures.