--%>
Assignment Help - homework help

Avoidable Interest

The book says "avoidable interest is the amount of interest cost during the period that a company could theoretically avoid if it had not made expenditures for the asset." This makes it sound like avoidable interest is the total amount of interest paid for an asset. I know it's not but I was wondering if maybe someone could explain it a little better. Thanks.

   Related Questions in Financial Accounting

  • Q : DM/S$ currency versus currency bid-ask

    Provided the given information, state the DM/S$ currency versus the currency bid-ask quotations? Bank Quotations              American Terms        

    		•
  • Q : Assurance services Significant costs

    Significant costs associated with the disposal of asset. Accounting for asset retirement obligations requires estimating the cost and discounting estimate. The present value added to the asset's depreciable base and a liability is recorded for the obligation. Every year, interest expense is added

    		•
  • Q : Social issues & person statuses Think

    Think of person you will who often irritates you or whose behaviour greats on your nerves. First list that person statuses and role then analysed his or her possible role expectations, role performance, role conflict and role strai

    		•
  • Q : Restrictions of standard costing Write

    Write down the restrictions of standard costing?

    		•
  • Q : What is Asset Management Asset

    Asset Management: The Asset management has two common definitions, one associating to advisory services and the other associated to corporate finance. In the initial instance, an advisor or financi

    		•
  • Q : Explain Control of Cash Explain Control

    Explain Control of Cash. Illustrate briefly.

    		•
  • Q : Factors influencing the value of

    Factors influencing the value of Goodwill: A) Proficient managementB) Quality of productC) Place of businessD) Accessibility of raw materialE) Positive contracts

    		•
  • Q : The cost of the new PPE purchased The

    The following information is taken from the financial statements of an entity: 20x4 20x3 Property, plant and equipment $4,600,000 $4,200,000 Accumulated depr

    		•
  • Q : Cross-hedging and its effectiveness

    Discuss cross-hedging and also some of the factors evaluating its effectiveness.

    		•
  • Q : Define Fixed Overhead Variance Give a

    Give a short introduction about the term ‘Fixed Overhead Variance’?

    		•