Factors to Be Considered in Reassessing the Estimate of Recoverable

question 40

Multiple Choice

Factors to be considered in reassessing the estimate of recoverable reserves each year include:

• A) the past production rate compared to total estimated reserves.
• B) the possibility that technological developments or discoveries may make the product obsolete or uneconomical at some future time.
• C) changes in technology, market or economic conditions affecting either sales prices or production costs, with a consequent impact on cut-off grades.
• D) the possibility that technological developments or discoveries may make the product obsolete or uneconomical at some future time and changes in technology, market or economic conditions affecting either sales prices or production costs, with a consequent impact on cut-off grades.

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Definitions:

Reportable

Pertains to information or incidents that must be officially recorded or disclosed, often in the context of legal, financial, or regulatory requirements.

Operating Segments

Components of a business that engage in operations that earn revenues, incur expenses, and are reviewed regularly by the company's management.

Reportable Segment

A component of a business that generates revenues and expenses related to the business’s operations, and whose financial results are regularly reviewed by the entity’s chief operating decision maker.

Minimum Revenue

The lowest amount of income considered acceptable or necessary for a company or project to stay viable.