Cost depletion is determined by multiplying the depletion cost per unit by the number of units sold.

Question

Quizplus · Accepted Answer

This is correct. Cost depletion is a method of calculating depletion expense that is based on the total cost of the natural resource divided by the total estimated units of the resource. The resulting cost per unit is then multiplied by the number of units sold each period to determine depletion expense for that period.

Cost Depletion Is Determined by Multiplying the Depletion Cost Per