Definition of Obsolescence:
Significant decline in the competitiveness, usefulness, or value of an article or property. Obsolescence occurs generally due to the availability of alternatives that perform better or are cheaper or both, or due to changes in user preferences, requirements, or styles. It is distinct from fall in value (depreciation) due to physical deterioration or normal wear and tear. Obsolescence is a major factor in operating risk, and may require write off of the value of the obsolete item against earnings to comply with the accounting principle of showing inventory at lower of cost or market value. Insurance companies take obsolescence into account to reduce the amount of claim to be paid on damaged or destroyed property. See also planned obsolescence.
The process of becoming obsolete or outdated and no longer used.
How to use Obsolescence in a sentence?
- Sometimes a product will hit a point of obsolescence and all you can hope for is to get whatever you can for it.
- Computers are infamous for their rapid obsolescence.
- Many paper news companies fear the the pervasiveness of digital media will run the newspaper business into a state of near-complete obsolescence .
- There was a concern of planned obsolescence with regards to the new technological device as newer ones are always produced every two years.
Meaning of Obsolescence & Obsolescence Definition