Definition

Obsolescence

Obsolescence is the process of becoming out of dates before the asset physically wears out. Revenue-producing ability may also decline because of obsolescence. For example, major airlines moved from Chicago’s Midway Airport to Chicago-O’Hare International Airport because Midway’s runways were too short for jumbo jets. Similarly, many companies replace their computers long before they originally planed to do so because improvements in new computing technology make the old computers obsolete.

Webster Dictionary Meaning

1. Obsolescence
- The state of becoming obsolete.
Share it:  Cite

More from this Section

  • Debit card
    Debit card is a plastic card, similar to a credit card, that transfers funds directly ...
  • Cost of goods sold
    Cost of goods sold is a category of expenses of a merchandising company which refers to ...
  • Honor of notes receivable
    A note is honored when its maker pays it in full at its maturity date. For an interest ...
  • Bad debts expense
    Bad debts expense is an expense account to record uncollectible receivables. Individuals ...
  • Debit memorandum
    Some banks charge a monthly fee for their services. Often they charge this fee only when ...