Which of the following methods is the least applied method to account for exploration and evaluation costs?
A) the area of interest method
B) the successful efforts method
C) the appropriation method
D) the full cost method

Question

Quizplus · Accepted Answer

The appropriation method is the least applied method for accounting for exploration and evaluation costs, as it only accounts for these costs when the company decides to appropriate or transfer the costs to the production cost of a specific area or asset. The other methods (area of interest, successful efforts, and full cost) all account for exploration and evaluation costs on an ongoing basis.

Which of the Following Methods Is the Least Applied Method