Depletion
Posted on November 3, 2020
at 3:11 pm
by april /
An accrual accounting technique used to allocate the cost of extracting natural resources such as timber, minerals and oil from the earth. Unlike deprecitation and amortization, which mainly describe the deduction of expenses due to the aging of equipment and property, depletion is the actual physical depletion of natural resources by companies. (Investopedia, 2017)
