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Oct 22, 2018· stripping costs are those costs incurred when removing overburden or waste materials in order to obtain access to a commercially-producible ore body.If so, and the activity provides better access to the deposit, then under gaap the cost should be capitalized along with other development costs.
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Companies with minimal accounting staff often use standard cost accounting.With standard costing, you estimate costs for each end item assembly and manufactured part on a level-by-level basis before production begins.These cost estimates are based on both past performance and analysis of .
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The previous video gave us a demonstration of the accounting process for depletion but we will review it here.Computing periodic depletion cost to compute depletion charges, companies usually use the units-of-production method.They divide total cost by the estimated number of unitstons, barrels, or board feetthat can be economically extracted from the property.
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An operating budget consists of revenues and expenses over a period of time, typically a quarter or a year, which a company uses to plan its operations.Download the free excel template.The monthly budgeting template has a column for each month and totals to be the full year annual figures.