Question Details

Companies should assign no portion of fixed overhead to self-constructed assets.



TRUE OR FALSE:
1.	Variable overhead costs incurred to self-construct an asset should be included in the cost of the asset.

	2.	Companies should assign no portion of fixed overhead to self-constructed assets.

	3.	When capitalizing interest during construction of an asset, an imputed interest cost on stock financing must be included.

	4.	Assets under construction for a company- own use do not qualify for interest cost capitalization.

	5.	Avoidable interest is the amount of interest cost that a company could theoretically avoid if it had not made expenditures for the asset.




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