Finance Awareness Quiz

Rental for Office is a Direct or Support Cost?

• Direct Cost

• Support Cost

Helicopter charges are Support Costs?

• False

• True

Acquisition of a new Fire Truck at Das?

• Capex

• Opex

Minimum Capitalization criteria is:

• >$5,000 & useful life of >5 years

•   >$3,000 & useful life does not matter

•   >$5,000 & useful life of >1 year

•    >$50,000 & useful life of >10 years

Extension of Accommodation unit on Accommodation Platform:

• Opex

• Capex

Repair of corroded floor on Platform :

• Capex

• Opex

Planned repair of Generator leading to increase in useful life by 2 years. Life immediately before repair was estimated to be 10 years

• Capex

• Opex

Cost Per Barrel Calculation formula:

•   Total Production in barrels / Total Opex

• Total Opex [without Gas] / Total Production in Barrels

•    Total Cost [Capex+Opex] / Total Production in Barrels

•   Total Opex / Production in MBD

Advance paid to contractor before work commences:

•   Record as Cost

• Record as Advance [in balance Sheet]

Contractor Progress at the end of current month is 60%. Invoices received are 50%. What should be done:

•   Record balance of 10% [60%-50%] as accrual

• Wait for the Contractor to send invoice

• Record current period budget as accrual