Which term refers to items that are obsolete, excess, or no longer needed?

Which term refers to items that are obsolete, excess, or no longer needed?

• A. Obsolete Inventory
• B. Returns
• C. Excess Inventory
• D. Surplus

Answer: (D)

Surplus inventory is the term used for items that are in excess of what the organization needs or are no longer required. It encompasses goods that aren’t needed anymore and those that are simply more than current demand, making them candidates for redistribution, sale, or disposal. Obsolete inventory refers to items that can’t be used due to obsolescence, while excess inventory highlights stock that’s more than needed but doesn’t by itself imply no longer usable; returns are items returned by users and aren’t considered surplus until they are reprocessed or reallocated. The broad idea of items that are extra or no longer needed is best captured by surplus.

Surplus inventory is the term used for items that are in excess of what the organization needs or are no longer required. It encompasses goods that aren’t needed anymore and those that are simply more than current demand, making them candidates for redistribution, sale, or disposal. Obsolete inventory refers to items that can’t be used due to obsolescence, while excess inventory highlights stock that’s more than needed but doesn’t by itself imply no longer usable; returns are items returned by users and aren’t considered surplus until they are reprocessed or reallocated. The broad idea of items that are extra or no longer needed is best captured by surplus.