DEPLETION Definition  Bookmark and Share  DEPLETION is the
process of cost allocation that assigns the original cost of a
natural resource to the periods benefited. For example: a mining
company purchases mineral rights to a deposit for $5 million for
a period of ten years. The cost of the natural resource, $5
million, will be depleted over the ten years of the benefit;
i.e., it is the physical exhaustion of a natural resource (e.g.,
timber, oil and coal).  Learn new Accounting Terms  FLAG OF
CONVENIENCE (FOC) involves the opportunistic registration of
ships with national governments that do not impose or
effectively administer agreed international standards regarding
seaworthiness, safety and health, officer and crew competencies,
and employment conditions. For the governments concerned FOC
shipping is an easy way to make money. Registration comes at a
price in return for turning a blind eye to maritime
responsibility, decency and common sense. The classic FOC host
has little to do legitimately with the sea