Cost divided by the total amount of the natural resource to be removed yields:
A)depletion expense for the period.
B)depletion rate per unit for the period.
C)accumulated rate for the period.
D)depreciation rate per unit for the period.

Question

Quizplus · Accepted Answer

Cost divided by the total amount of the natural resource to be removed yields depletion rate per unit for the period. This rate is used to calculate the depletion expense for the period. The accumulated rate for the period is the sum of depletion rates for all periods up to that point. Depreciation rate per unit is not relevant in this case as it pertains to the cost of tangible assets.

Cost Divided by the Total Amount of the Natural Resource