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Difference between expected and unexpected obsolence

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Difference between expected and unexpected obsolence

    • Posted by Simran @_@ 3 years, 4 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Sia ? 3 years, 4 months ago

    Basis of Difference Expected Obsolescence Unexpected Obsolesescne
    Meaning It refers to the fall in the value of fixed assets due to a change in technology or demand. It refers to the fall in the value of fixed assets due to natural calamities and economic recession.
    Reasons For this, Change in technology and demand are the main reasons. For this, Natural calamities and economic recession result in this obsolescence.
    Part of depreciation Considering this loss, It is regarded as a part of depreciation. In this respect, It is not regarded as a part of depreciation.
    Capital loss Here, The loss due to this is added as consumption of fixed assets. Here, The loss due to this is added to a capital loss.
    Management It is managed through a depreciation reserve fund. It is managed through the insurance of fixed assets.
    Prediction In this regard, the producers can predict the loss through their experience and knowledge. In this respect, the loss cannot be predicted before.

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