(redirected from scraps)
Also found in: Dictionary, Thesaurus, Acronyms, Idioms, Encyclopedia, Wikipedia.

Residual Value

In accounting, an estimate of the value of an asset at the end of its depreciation. For example, a firm's computer depreciates each year. When it breaks down or becomes obsolete, it has a residual value; it is calculated by the best guess of the net cash inflow when it is sold at the end of its life. It will never be above the blue book value.

In price regulated industries, the residual value may be a negative value because it includes the net cash outflow in removing the asset from where it was used. For example, nuclear energy plants must store the nuclear waste at the end of their useful life. This cost is a contributing factor in the residual value. It is also called the salvage value or scrap value. See also: Absolute Physical Life, Obsolescence.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


seriously defective or damaged components or products that are rejected by a firm's QUALITY CONTROL system as incapable of being rectified and which have to be disposed of for the salvage value of their materials.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
Historically, scrap tires, tire parts and tire buffings have been the primary source of raw scrap rubber available for reclaiming.
Various types of natural rubber scrap have been available to the reclaimers through the years and substantial volume of both black and light colored natural reclaim have been produced.
It has been used to melt steel scrap commonly available in the U.K.
"That's just an indicator of how this system can accurately look at performance levels on the buy side for our current customers, and I'm certain on the sell side for prospective scrap customers," says Gallagher.
Moderated by ISRI President Robin Wiener, the council will provide networking opportunities for the growing number of professional women in the scrap recycling industry Monday, April 26, at 9:30 a.m.