The portion of the cost of natural resources that is consumed in a particular period is called:
A) depreciation expense.
B) amortization expense.
C) depletion expense.
D) resource expense.

Question

Quizplus · Accepted Answer

Depletion expense is the portion of the cost of natural resources that is consumed in a particular period. This is because natural resources such as oil, coal, minerals, and timber are finite and their value decreases over time as they are extracted or harvested. Depreciation expense relates to the wear and tear on physical assets, while amortization expense relates to the gradual reduction in value of intangible assets. Resource expense is not a commonly used accounting term.

The Portion of the Cost of Natural Resources That Is