Which of the following costs are capitalized for self-constructed assets?
A) Materials and labor only
B) Labor and overhead only
C) Materials and overhead only
D) Materials, labor, and overhead

Question

Quizplus · Accepted Answer

All costs incurred during the self-construction of an asset can be capitalized, including the cost of materials, labor, and overhead. This includes direct costs such as materials and labor, as well as an allocation of indirect costs such as depreciation, rent, utilities, and other related expenses. Therefore, the correct choice is D - materials, labor, and overhead.

Which of the Following Costs Are Capitalized for Self-Constructed Assets