allowance for price declines

简明释义

降价备抵

英英释义

例句

1.The company set aside an allowance for price declines in its budgeting to prepare for market fluctuations.

公司在预算中预留了一个价格下跌的准备金，以应对市场波动。

2.During the quarterly review, the manager noted the need for an allowance for price declines in their product line.

在季度审查中，经理注意到其产品线需要一个价格下跌的准备金。

3.A prudent business strategy includes an allowance for price declines to mitigate risks associated with volatile markets.

谨慎的商业策略包括一个价格下跌的准备金，以减轻与波动市场相关的风险。

4.Investors often consider an allowance for price declines when evaluating the future performance of stocks.

投资者在评估股票未来表现时，通常会考虑价格下跌的准备金。

5.The accountant made an allowance for price declines to ensure the financial statements reflected potential losses in inventory value.

会计师做了一个价格下跌的准备金，以确保财务报表反映出库存价值可能的损失。

作文

In the world of economics and finance, businesses often face the challenge of fluctuating prices. One important concept that helps companies manage this uncertainty is the allowance for price declines. This term refers to the provision made by a company to account for potential decreases in the value of its inventory or assets over time. Understanding this concept is crucial for effective financial planning and decision-making.When a company produces goods or holds inventory, it must consider the possibility that the market price of these items may drop. This can occur due to various factors such as changes in consumer demand, increased competition, or advancements in technology that render certain products obsolete. To mitigate the impact of these price fluctuations, businesses create an allowance for price declines, which serves as a buffer against potential losses.For example, consider a technology company that manufactures smartphones. If the company anticipates that the price of its existing models will decline due to the release of new models by competitors, it may decide to set aside a specific amount of money in its financial statements. This amount represents the estimated loss in value of its current inventory, thus creating an allowance for price declines. By doing so, the company ensures that its financial reports reflect a more accurate picture of its assets and liabilities.The process of establishing an allowance for price declines involves careful analysis and forecasting. Companies typically examine historical price trends, market conditions, and economic indicators to determine the likelihood and extent of potential price drops. This analysis allows them to make informed decisions about how much to allocate for this allowance. Moreover, it helps in maintaining investor confidence, as stakeholders are more likely to trust a company that proactively manages its financial risks.Another key aspect of the allowance for price declines is its impact on a company's cash flow. When a business recognizes a decline in the value of its inventory, it does not necessarily mean that it will incur an immediate cash loss. However, it does affect the overall profitability and financial health of the organization. By setting up this allowance, companies can better prepare for future challenges and ensure they have sufficient resources to navigate through tough times.In conclusion, the concept of allowance for price declines is vital for businesses operating in dynamic markets. It provides a mechanism for companies to anticipate and mitigate the risks associated with falling prices, ensuring more accurate financial reporting and improved cash flow management. As markets continue to evolve, understanding and implementing this allowance will remain essential for businesses striving to maintain their competitive edge and financial stability.

在经济和金融的世界中，企业常常面临价格波动的挑战。一个帮助公司管理这种不确定性的重要概念是价格下跌准备金。这个术语指的是公司为考虑其库存或资产随时间可能贬值而做出的准备。理解这个概念对于有效的财务规划和决策至关重要。当一家公司生产商品或持有库存时，它必须考虑这些物品的市场价格可能会下跌的可能性。这种情况可能由于各种因素而发生，例如消费者需求的变化、竞争加剧，或技术进步使某些产品过时。为了减轻这些价格波动的影响，企业创建价格下跌准备金，作为潜在损失的缓冲。例如，考虑一家制造智能手机的科技公司。如果该公司预见到由于竞争对手发布新型号，其现有型号的价格将下跌，它可能决定在其财务报表中预留一笔特定金额。这笔金额代表其当前库存估计的价值损失，从而创建了价格下跌准备金。通过这样做，公司确保其财务报告反映出其资产和负债的更准确情况。建立价格下跌准备金的过程涉及仔细的分析和预测。公司通常会检查历史价格趋势、市场条件和经济指标，以确定潜在价格下跌的可能性和程度。这种分析使他们能够就为此准备金分配多少做出明智的决策。此外，它有助于维护投资者信心，因为利益相关者更有可能信任一个积极管理财务风险的公司。价格下跌准备金的另一个关键方面是它对公司的现金流的影响。当企业承认其库存的价值下降时，这并不一定意味着它会立即遭受现金损失。然而，它确实影响了组织的整体盈利能力和财务健康。通过设立这一准备金，公司可以更好地为未来的挑战做好准备，确保他们拥有足够的资源来应对困难时期。总之，价格下跌准备金的概念对于在动态市场中运营的企业至关重要。它为公司提供了一种机制，以预测和减轻与价格下跌相关的风险，确保更准确的财务报告和改善现金流管理。随着市场的不断发展，理解和实施这一准备金将继续是企业努力保持竞争优势和财务稳定的必要条件。