Is the installation labor for a new asset expensed or included in the cost of the asset?

Accounting for Labor to Install Asset

The definition of an asset's cost is all costs that are necessary to get an asset in place and ready for use. Therefore, the cost of the installation labor (wages and related fringe benefits) is part of the cost of the asset (and not an immediate expense of the accounting period).

The total cost of the asset, including installation costs, will become an expense when the asset depreciated over the asset's useful life.