obsolescence

Examples of obsolescence in the following topics:

• Efficiency Metrics

  • In addition, excess inventory increases the risk of losses due to price declines or inventory obsolescence.
  • A low turnover rate may point to overstocking, obsolescence, or deficiencies in the product line or marketing effort.

• Factors for Calculating Depreciation

  • There are four main factors that affect the calculation of depreciation expense: asset cost, salvage value, useful life, and obsolescence.
  • Obsolescence should be considered when determining an asset's useful life and will affect the calculation of depreciation.

• Limited-Life Impairment

  • Intangible assets are amortized to reflect their consumption, expiry, obsolescence or other decline in value as a result of use or the passage of time, process which is similar to the deprecation process for tangible assets.

• Inventory Turnover Ratio

  • A low turnover rate may point to overstocking, obsolescence, or deficiencies in the product line or marketing effort.