1)Which of the following items is considered as a direct cost under the joint interest accounting? A.Home office administration. B.Office services. C.Rentals. D.Legal support.

2)An oil company plans to sell its facility before the end of its useful life. A.The company is not required to recognize the asset retirement obligation associated with this asset. B.The company is required to recognize the asset retirement obligation associated with this asset, if applicable. C.If the company is a full cost company, it is not required to recognize the asset retirement obligation associated with this asset. D.If the company is a successful efforts company, it is not required to recognize the asset retirement obligation associated with this asset.

Which of the following costs shall NOT be expensed under the full cost accounting? A.executive compensation. B.salaries of accounting personnel. C.G&G studies. D.Costs of human resource department.

Tyrant Pump Corp. operates Lease Adama and Lease Bonehead. The company uses 15 barrels of oil obtained from Lease Adama as fuel on Lease Bonehead. Assume the oil is priced on both leases at $100/bbl and the production tax rate is 5%. A.The 15 barrels of oil are considered as free fuel to Lease Bonehead. B.Lease Adama incurs an operating cost of $1,500. C.The value assigned to the 15 barrels of oil would normally be lower than the price at which the oil produced in the area could have been sold. D.Production taxes of $75 must be paid.

When preparing a reserve estimate, a reservoir engineer should not take into account: A.the size of the reservoir. B.the porosity and permeability of the reservoir. C.the cost to complete the well. D.pressure and temperature in the reservoir.

The costs of installing secondary and tertiary recovery systems should be: A.expensed as incurred. B.capitalized and amortized using the unit-of-production method. C.part of the production costs. D.either capitalized or expensed depending on the purposes of installation.

A run ticket at the time of the oil delivery records: A.the basic sediment and water. B.the gravity of the oil. C.selling price. D.all of the above items.

Which of the following management functions probably is NOT part of the first level supervision functions? A.Responsibility for optimal resource utilization. B.Planning and directing human resources. C.Coordination of job priorities and approval of work procedures. D.Oversight of sub-groups for field functions such as electrical, safety, environmental, telecommunications, which may have group or team leaders.