Final answer:
Obsolescence is an economic factor related to an asset's service life, as it affects the usefulness of the asset due to technological or market changes, not just physical deterioration.
Step-by-step explanation:
Obsolescence is an economic factor related to an asset's service life. In the context of assets and their lifespans, obsolescence refers to the situation where an asset may no longer be useful due to changes in technology, customer preferences, or market standards, even if the asset is still in a functional state. Planned obsolescence, a term highlighted by sources such as The Economist, often manifests in products like stockings that develop runs after a few wearings, compelling users to replace them frequently.
Furthermore, in the age of technology, durable goods and lifetime warranties are becoming more valuable as the recognition of the environmental and economic costs tied to manufacturing new units and disposing of old ones grows. Thus, obsolescence can significantly affect the service life of an asset by rendering it uneconomical to continue to use it before it has physically deteriorated.