The method of accounting for oil exploration that capitalizes the costs of all explorations is known as:
A)successful efforts method.
B)successful costs method.
C)full cost method.
D)full efforts method.

Question

Quizplus · Accepted Answer

The full cost method involves capitalizing the costs of all explorations, regardless of the exploration's success or failure. This includes both successful efforts and unsuccessful efforts. The other options, including the successful efforts method and successful costs method, only capitalize costs related to successful explorations.

The Method of Accounting for Oil Exploration That Capitalizes the Costs