Depletion expense
A) is usually part of cost of goods sold.
B) includes tangible equipment costs in the depletion base.
C) excludes intangible development costs from the depletion base.
D) excludes restoration costs from the depletion base.

Question

Quizplus · Accepted Answer

Depletion expense is typically included in the cost of goods sold because it reflects the consumption of natural resources, which are part of the cost of producing the goods sold by a company.

Depletion Expense