Blog for the Oil & Gas Accounting Industry

Blog for the Oil & Gas Accounting Industry

Tuesday, 29 December 2015 19:11

COPAS Major Construction Overhead

The Major Construction Overhead (MCOH) and Catastrophe Overhead charges to the Joint Account provide a mechanism for the operator to recover general costs attendant to executive and administrative functions, as well as other costs that cannot be directly charged to the Joint Account in connection with the project.For many Accounting Procedures, the projects must exceed a dollar threshold to qualify for Major Construction Overhead and the rate varies by expenditure tiers,for the purpose of obtaining funds on a more timely basis