Capitalized interest is based on the:
A)all amounts borrowed to pay for the materials during construction.
B)estimated costs of interest during construction.
C)costs incurred to borrow money to pay for material, labour, and overhead.
D)interest incurred to finance purchased assets.

Question

Quizplus · Accepted Answer

Capitalized interest refers to the costs incurred to borrow money used specifically to finance the construction of a project, including payments for materials, labor, and overhead. This does not typically include interest on money borrowed for other purposes, such as financing purchased assets.

Capitalized Interest Is Based on The