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.

• Inventory decisions

  • Inventory that exceeds what is needed to satisfy customer demand imposes unnecessary costs such as storage, deterioration, obsolescence, theft, and money tied up in inventory that cannot be used for other purposes.

• Special topic: just-in-time and lean systems

• 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.

• Noncash Items

  • A machine bought in 2012, for example, will not be worth the same amount in 2022 because of things like wear-and-tear and obsolescence.

• Inventory Turnover Ratio

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

• Consumer Products

  • Consumer products will generally be less expensive than professional-grade goods, but will lack the durability of the latter product class, and will reach obsolescence quicker.

• The Need for Management

  • The prevailing wisdom of the time held that IBM's core mainframe business was headed for obsolescence.

• The Need for New Products

  • In the past, four of these products have been deleted as they near obsolescence (the products labeled as A, B, C, and F).

• 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.