Conceptually, the cost allocation procedure for natural resources parallels that of property, plant, and equipment.

Question

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Both natural resources and property, plant, and equipment (PP&E) are tangible assets that are capitalized upon acquisition and then systematically allocated over their useful lives through depreciation (for PP&E) or depletion (for natural resources), reflecting their consumption or use over time.

Conceptually, the Cost Allocation Procedure for Natural Resources Parallels That