At the Time of Capitalization of the Costs Incurred in the Construction

question 15

True/False

At the time of capitalization of the costs incurred in the construction of the asset,expenses pertaining to the new asset must go through the income statement.

---

Definitions:

Average Fixed Cost

The fixed cost divided by the quantity of output, representing the fixed cost per unit of output.

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or output in a business.

Variable Costs

Costs that change in proportion to the good or service that a business produces.

Fixed Costs

Expenses that do not change with the amount of goods or services produced by a business.