Inventory Accountant Mock Interview
Master 25 Inventory Accountant interview questions covering GAAP, variance analysis, and cost accounting systems.
Question 3 of 25
What is obsolescence expense?
How to Answer
Example Answer
Community Answers
Brian Schuchart is a CPA and Senior Finance Business Partner. His professional experience includes senior management roles with NBC Sports, Virtual Health, and the Children's Hospital of Philadephia.
Obsolescence refers to inventory that no longer has value or has reduced value. It is inventory that either cannot be sold or will be sold at a steep discount. The interview candidate should be able to define obsolescence and also speak to its accounting treatment.
Brian Schuchart is a CPA and Senior Finance Business Partner. His professional experience includes senior management roles with NBC Sports, Virtual Health, and the Children's Hospital of Philadephia.
"Obsolescence occurs when inventory becomes obsolete. As a result, the inventory cannot be sold or is expected to be sold at discounted pricing. The obsolescence reserve is a contra asset on the balance sheet that reduces the gross inventory to its expected value net of obsolete inventory. Obsolescence expense on the income statement reflects the periodic changes in that reserve balance."
Write Your Answer
0 - Character Count
Unlock All 25 Inventory Accountant Questions
Unlock expert responses for technical accounting and inventory reconciliation questions.
Get StartedJump to Question