One of the risks associated with long manufacturing cycles is inventory obsolescence.
Financial and business terms. 2012.
obsolescence — ob‧so‧les‧cence [ˌɒbsəˈlesns ǁ ˌɑːb ] noun [uncountable] when a product, system etc is becoming no longer useful because something better is available, possible etc: • Now markets are subject to the faster obsolescence of products due to greater … Financial and business terms
Inventory — means a list compiled for some formal purpose, such as the details of an estate going to probate, or the contents of a house let furnished. This remains the prime meaning in British English.[1] In the USA and Canada the term has developed from a… … Wikipedia
obsolescence — A reduction or ending of an asset’s *useful economic life (or sales value) through technological or other changes. Obsolescence is an important factor in the *amortization of *long term assets and the valuation of inventory The operational… … Auditor's dictionary
Inventory turnover — The Inventory Turnover is an equation that equals the cost of goods sold divided by the average inventory. Average inventory equals beginning inventory plus ending inventory divided by 2. Inventory Turnover EquationThe formula for inventory… … Wikipedia
Inventory — The raw materials, work in process goods and completely finished goods that are considered to be the portion of a business s assets that are ready or will be ready for sale. Inventory represents one of the most important assets that most… … Investment dictionary
obsolescence — A fall in the value of an asset as a result of its age or decline in its usefulness for other reasons. Obsolescence is an important factor both for depreciation and stock (inventory). In respect of depreciation, changes in technology or markets… … Accounting dictionary
Inventory Accounting — The body of accounting that deals with valuing and accounting for changes in inventoried assets. Changes in value can occur for a number of reasons including depreciation, deterioration, obsolescence, change in customer taste, increased demand,… … Investment dictionary
Average Age Of Inventory — The average number of days it takes for a firm to sell a product it is currently holding as inventory to consumers. The formula to calculate the average age of inventory is C/G x 365, where C is the average cost of inventory at its present level… … Investment dictionary
National Bridge Inventory — The National Bridge Inventory (NBI) is a database, compiled by the Federal Highway Administration, with information on all bridges and tunnels in the United States that have roads passing above or below. This is similar to the grade crossing… … Wikipedia
obsolescent — obsolescence ob‧so‧les‧cence [ˌɒbsəˈlesns ǁ ˌɑːb ] noun [uncountable] when a product, system etc is becoming no longer useful because something better is available, possible etc: • Now markets are subject to the faster obsolescence of products… … Financial and business terms
