Obsolescence from going out of style, increased competition, and damage might cause the value of inventory to fall below its original cost.
When an item, service, or activity is no longer required or maintained, even if it may still be in good functioning order, obsolescence sets in. Obsolescence is defined as the "transition from available to unavailable from the manufacturer in line with the original specification" in the international standard IEC 62402:2019 Obsolescence Management.
Obsolescence typically arises as a result of the availability of a replacement that, overall, offers more benefits than the costs associated with maintaining or repairing the original. Something that is already out of date, rejected, or obsolete is also referred to as being obsolete. Obsolescence typically comes after a slow drop in popularity.
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