ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 110
d. gains and losses should not be anticipated but should be
recognized when the asset is sold.
S31. To be consistent with the historical cost principle,
overhead costs incurred by an enterprise constructing its own
building should be
a. allocated on the basis of lost production.
b. eliminated completely from the cost of the asset.
c. allocated on an opportunity cost basis.