A latent variable model is a statistical model that relates a set of variables (so-called manifest variables) to a set of latent variables.
DEFINITION of 'Functional Obsolescence'. A reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed.The term is commonly used in real estate, but has a wide application.Next Up. reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed. The term is commonly used in real estate, but has a wide application. Next Up.
Obsolete stock or stock obsolescence calculations are done by companies to determine how much of their inventory (stock) on hand is unlikely to be used in the future.stimation of stock obsolescence without any traceable calculations will probably not be acceptable to an auditor. Typically, a stock obsolescence report uses the value of stock on hand as a starting point, and then reduces this value based on the potential that stock will be used up in the future.