Interest is a capitalized cost in which of the following situations?
A)On assets being constructed for a firm's own use.
B)On assets being purchased for a firm's own use.
C)On assets being manufactured for inventory.
D)On assets being purchased for inventory.

Question

Quizplus · Accepted Answer

Interest is capitalized during the construction period of assets being constructed for a firm's own use, as it is considered part of the cost of constructing the asset.

Interest Is a Capitalized Cost in Which of the Following