ACC 304 Experience Tradition / tutorialrank.com ACC 304 Experience Tradition / tutorialrank.com | Page 94
6. Variable overhead costs incurred to self-construct an asset should be included in the cost of the asset.
7. Companies should assign no portion of fixed overhead to self-constructed assets.
8. When capitalizing interest during construction of an asset, an imputed interest cost on stock financing must be included.
9. Assets under construction for a company’ s own use do not qualify for interest cost capitalization.
6. Variable overhead costs incurred to self-construct an asset should be included in the cost of the asset.
7. Companies should assign no portion of fixed overhead to self-constructed assets.
8. When capitalizing interest during construction of an asset, an imputed interest cost on stock financing must be included.
9. Assets under construction for a company’ s own use do not qualify for interest cost capitalization.