Which of the Following Types of Interest Cost Incurred in Connection

question 77

Multiple Choice

Which of the following types of interest cost incurred in connection with the purchase or manufacture of inventory should be capitalized as a product cost?

• A) purchase discounts lost
• B) interest incurred during the production of discrete projects such as ships or real estate projects
• C) interest incurred on notes payable to vendors for routine purchases made on a repetitive basis
• D) interest on a building mortgage