Which of the following methods involves capitalising exploration and evaluation costs using a larger cost centre than an area of interest such as a country or region?
A) The full cost method.
B) The appropriation method.
C) The area of interest method.
D) The successful efforts method.

Question

Quizplus · Accepted Answer

The method described is the full cost method, which involves capitalising exploration and evaluation costs using a larger cost centre than an area of interest such as a country or region. This method is commonly used in the oil and gas industry. The appropriation method involves setting aside funds for a specific purpose, while the area of interest method and the successful efforts method do not involve capitalising exploration and evaluation costs using a larger cost centre.

Which of the Following Methods Involves Capitalising Exploration and Evaluation