Final answer:
Capitalized interest costs for construction projects include those from specific and general borrowings related to the project, as well as imputed interest costs, which represent the opportunity cost of internally financed constructions.
Step-by-step explanation:
The types of interest costs that can be capitalized in relation to construction projects are primarily those costs associated with specific borrowings made to finance the construction itself.
However, during the period of construction, any general borrowings that the company has outstanding can also have a portion of their interest costs allocated to the construction project, based on a reasonable method. As for imputed interest costs, these can be considered for capitalization when a company constructs an asset with its own resources and does not incur actual interest costs. This imputed interest represents the opportunity cost of the funds used to construct the asset, tying back into the economic principle that every choice has an associated opportunity cost.