ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 94

6. Variable overhead costs incurred to self-construct an
asset should be included in the cost of the asset.

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

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

9. Assets under construction for a company’s own use do
not qualify for interest cost capitalization.