The cost of natural resources is not allocated to expense because the natural resources are replaceable only by an act of nature.

Question

Quizplus · Accepted Answer

The cost of natural resources should be allocated to expense to reflect the depletion or usage of these resources, even if they are replaceable by an act of nature. This allocation helps to accurately report the true cost of operations and the impact on future resources.

The Cost of Natural Resources Is Not Allocated to Expense