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Can oilfield services that an entity performs be included in COGS?

April 26, 2017COGs entity included oilfield performs Services

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Can oilfield services that an entity performs be included in COGS?

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The labor and materials used in the construction, improvement, remodeling, repair, or industrial maintenance (as defined in Rule 3.357) of real property are allowed as COGS. Oilfield services that pertain to the construction, improvement, remodeling, repair, or industrial maintenance of oil and gas wells can be included in COGS for allowable costs under TTC 171.1012.