When moving from the exploration and evaluation phase to subsequent phases of operations,the reclassified costs are labelled:
A) mining expenses.
B) assets under construction.
C) costs of goods sold.
D) amortised costs.

Question

Quizplus · Accepted Answer

When moving from the exploration and evaluation phase to subsequent phases, costs incurred during the exploration and evaluation phase are reclassified as assets under construction. These costs will be capitalized and amortized over the life of the mine. Therefore, option B, assets under construction, is the best choice.

When Moving from the Exploration and Evaluation Phase to Subsequent