Generally, Which of the Following Costs Are Capitalized for Self-Constructed

question 72

Multiple Choice

Generally, 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

---

Definitions:

Elastic Demand

A situation where the demand for a product significantly changes in response to changes in the product's price.

Total Revenue

The sum of money a company earns from selling goods or providing services over a specified time frame.

Inelastic

Describes a situation where the demand or supply for a product does not significantly change with the alteration in price.

Elastic

Describes the sensitivity of demand or supply for a good or service to changes in its price, with higher elasticity indicating greater sensitivity.