Which of the following is an example of an acquisition cost?

Acquisition costs are expenses incurred to bring an asset to a condition ready for its intended use. This concept is crucial in asset management and investment decisions. Site preparation serves as a relevant example of an acquisition cost because it involves the necessary groundwork and modifications to make a property suitable for development or construction. This includes costs associated with clearing the land, grading, and making it suitable for the intended project. Such expenditures are essential for the asset's readiness, thus categorizing them as acquisition costs.

In contrast, while labor costs could be associated with acquisition activities, they can often pertain to ongoing operations rather than the initial procurement phase. Repairs and maintenance are typically ongoing expenses related to maintaining an asset's condition rather than costs to make an asset ready for its intended use. Security costs can also fall under operational expenses necessary for safeguarding an existing asset rather than an acquisition-specific cost. Recognizing these distinctions is vital for proper financial reporting and asset valuation in the context of whole-life asset management.