Strategically Speaking: How Will E-books Impact Your Bottom Line?
It’s time to sit down and rethink traditional business models. Here are key factors to consider.
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3. Inventory Obsolescence. Obsolescence represents the cost of unsold inventory—product manufactured that never leaves the warehouse or is returned. Once the product has been deemed unsalable or only salable at a price well below its manufacturing cost (i.e., a remainder sale), the value of the unsold inventory is charged against the income statement.
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David Hetherington
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