1. Under current US GAAP, which of the following costs may be capitalized for self-constructed assets?

a. Direct materials and direct labor only

b. Direct materials, direct labor and variable overhead only

c. Direct materials, direct labor and fixed overhead only

d. Direct materials, direct labor, and a portion of both fixed and variable overhead

2. When a plant asset is disposed of, a gain or loss may result. The gain or loss would be classified on the income statement asa. an other revenue or other expense.

b. an operating revenue or operating expense.

c. a correction of an error.

d. a change in accounting estimate.