👉 Overdung, in accounting terminology, refers to a situation where an entity or firm's inventory exceeds its carrying amount. When overduing, the total value of the inventory is less than the market value of the goods it represents. This can lead to financial losses if the company cannot sell the excess inventory at a fair price and does not meet its accounting targets. For example, an overdued firm might have too much inventory that has no practical use or potential to generate revenue, while having
