What is the process of allocating the cost of natural resources to expense as they are used?

Q: Which of the following elements represents an economic resource? B . Liability.

A: The variables being used to manufacture products or provide services are economic assets. That is to…

Q: What costs should be capitalized for a self constructed asset?

A:

Q: Distinguish between investment in physical assets and investment in working capital?

A: Fixed capital ventures or investments speak to long term resource obtaining and maintenance.

Q: WHAT IS TECHNICAL OBSOLECENSE OF ASSET

A: The term obsolete refers to the fact that a commodity is no longer in use. Obsolescence refers to…

Q: Explain the following terms: practical capacity, cost of resources supplied, cost of resources used,…

A: Resource: It refers to a supply that can be used for producing the benefits or by making use of…

Q: is used to pay running costs or operating expenditures. Investment Capital

A: A company's running costs are the amounts of money spent on things like salaries, heating, lighting,…

Q: Which of the following is not included as part of the cost of an item of property, plant and…

A: Property, Plant and Equipment refers to All fixed Asset having long useful life more than One year.…

Q: Distinguish between the cost of land and the cost of land improvements with example.

A: Land improvements means any type of alteration to the land to make it more usable. Land improvements…

Q: in general, what is the required accounting treatment for research and development costs?

A: The research and development costs are the cost incurred to research for some new ideas and cost…

Q: What is the criterion a company uses to decide whether to include an expenditure in the cost of…

A: The criterion used by a company to include a cost in the cost of an asset is whether it is necessary…

Q: What is a natural resource? What is the process by which businesses spread the allocation of a…

A: Natural resources:

Q: What costs should be included when measuring the total cost to acquire a long-term asset?

A: Long-term assets: The assets which are used to generate revenue for the business operations for a…

Q: The cost of an asset that is subject to depreciation os called?

A: Assets: Assets are those resources that are owned by the business organization which has an economic…

Q: Depreciation is a process of cost allocation, not valuation. Explain this statement.

A: Depreciation: Depreciation expense is a non-cash expense, which is recorded on the income statement…

Q: Which of the following costs is relevant in decisionmaking? committed costs accounting costs cash…

A: Following is the answer to the given question

Q: Why do we include all the incidental charges relating to the acquisition of a machine in its cost?

A: When a machine is acquired, it needs to be capitalized as fixed assets and depreciation needs to be…

Q: Distinguish between measuring assets based on current cost and historical cost.

A:

Q: What are flotation costs?

A: If it publishes fresh shares and incurred expenses such as underwriting fees, legal fees, and…

Q: Of the following costs related to the development of mi one is not a part of depletion cost?

A: Deplation Cost One of two accounting systems for allocating the costs of extracting natural…

Q: purposes of environmental cost

A: Answer: Environmental cost is the costing system which controls the cost which is related to…

Q: The cost of a depreciable asset is referred to as the

A: The Answer :

Q: How are research and development expenses treated?

A: Research and development(R&D) expenses: These  are the expenses which an entity incurs in…

Q: A right of use asset is initially measured at costs and subsequently measured using the  A. Cost…

A: An asset is the resource owned by the company for using it in the future.

Q: What factors must be known or estimated in order to compute depreciation expense?

A: Definition: Depreciation: Depreciation is a decrease in the value of the fixed assets over a period…

Q: Why should the total costs of the machine be viewed as an asset and allocated against the future…

A:

Q: Explain the difference between resource spending and resource usage.

A: Resources: Resources are the economic elements that enable people to carry out activities. A…

Q: What is meant by the “depreciable cost” of a plant asset?

A: The assets having the life of more than a year can be classified as non-current or plant assets.…

Q: What is the total cost of ownership concept? What are some of the challenges that must be overcome…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: What is the process of allocating the cost of a plant asset over its useful life called?

A: Depreciation:Depreciation is the reduction in the value of an asset over its useful life. An asset…

Q: What are two advantages to basing the valuation of assets and liabilities on their historical cost?

A:

Q: Define cost of natural resources.

A: Timber, Mineral deposits, oil reserves, and other various natural resources are considered assets…

Q: What is depreciation? What are the different methods, and when would each be appropiate?

A: Depreciation is the term related with the usage of long lived assets. This term implies the…

Q: How does depreciation expense differ from other operatingexpenses?

A: Depreciation: It refers to a gradual decrease in the fixed asset’s value because of obsolescence,…

Q: How can we determine the unit profit of operating an asset?

A: Operating income: Operating income measures the organization’s profitability (includes all incomes…