Using the full-costing method,the cost of dry wells is capitalized with the cost of producing wells.

Question

Quizplus · Accepted Answer

Under the full-costing method, all costs associated with drilling for oil or gas, including exploration, development, and production costs, are capitalized and included in the cost of the well. Therefore, the cost of dry wells is still capitalized under this method along with the cost of producing wells.

Using the Full-Costing Method,the Cost of Dry Wells Is Capitalized