The successful efforts (SE) method allows a company to capitalize only those expenses associated with successfully locating new oil and natural gas reserves. For unsuccessful (or "dry hole") results, the associated operating costs are immediately charged against revenues for that period.
Simply so, what is full cost approach?
Full costing is an accounting method used to determine the complete end-to-end cost of producing products or services. The alternative to the full costing method is known as variable or direct costing. With the treatment of fixed manufacturing overhead costs being the primary difference between both methods.
What is the total cost method?
1. Definition of the total cost concept in managerial accounting. In managerial accounting, the total cost concept is one of the cost-plus pricing methods used to determine the selling price of a product. Cost-plus pricing methods determine the selling price of a product as the total cost per unit plus the markup.
What is D&A?
Depreciation, depletion and amortization (DD&A) are noncash expenses used in accrual accounting. Amortization is the deduction of capital expenses over a specified time period, typically the life of an asset.