Accounting Discussion Question

label Accounting
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

Why are self-constructed assets important?

Jan 23rd, 2015

The critical accounting issue in these instances is identifying the cost of the self-constructed asset. The task is more difficult than for purchased assets because there is no external transaction to establish an exchange price. Actually, two difficulties arise in connection with assigning costs to self-constructed assets: (1) determining the amount of the company's indirect manufacturing costs (overhead) to be allocated to the construction and (2) deciding on the proper treatment of interest incurred during construction.


Jan 23rd, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Jan 23rd, 2015
...
Jan 23rd, 2015
Jun 26th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer