213k views
5 votes
What is the difference between functional obsolescence and physical obsolescence?

a) Functional is related to wear and tear, while physical is due to outdated technology
b) Physical is caused by wear and tear, while functional is due to outdated technology
c) Both terms refer to the same concept
d) Neither term is relevant in accounting

1 Answer

3 votes

Final answer:

Physical obsolescence is caused by wear and tear, while functional obsolescence is due to outdated technology or changes in consumer preferences. Manufacturers may use planned obsolescence to encourage more frequent replacement of products.

Step-by-step explanation:

The difference between functional obsolescence and physical obsolescence relates to the causes behind a product becoming outdated or less valuable. Physical obsolescence is caused by wear and tear; this is the degradation that occurs as a product is used over time, leading to a decline in its physical condition. On the other hand, functional obsolescence occurs when a product becomes outdated due to advances in technology or changes in consumer preferences, rather than through physical deterioration. A product can still be in good physical shape but considered functionally obsolete if it no longer meets modern standards, lacks features found in newer models, or is not compatible with current technology.

An example of functional obsolescence is when consumers no longer prefer older models of smartphones because they lack the features or capabilities of the latest versions. An example of physical obsolescence would be a device that has worn out from regular use, such as a mobile phone with a failing battery or damaged screen.

In the context of planned obsolescence, manufacturers may deliberately design products with a limited useful lifecycle, prompting consumers to replace products more frequently. This may involve creating products that are prone to physical wear or that rapidly become functionally obsolete due to technological advancements.

User Michelle Glauser
by
8.8k points