Oil (Your Hidden Asset)
When considering an asset, or a potential capital expenditure for next year’s budget, what is the threshold for determining whether that piece of equipment needs to be capitalized? Is it $100,000, $50,000, perhaps even as low as $5,000? There are some painstaking processes to take care of assets once they are in the plant, as well as justification to make sure that they provide the necessary efficiencies required. Would it make sense to treat oil in the same manner, as an asset?