You might think this is a list of your middle-age to late-age birthdays, and the relative humiliations that come with each: back pain, gluten-free cake, perfunctory birthday cards from your kids that arrive two weeks late, gluten-and-sugar-free cake, perfunctory birthday cards from your grandkids that arrive six weeks late, no cake, completely forgetting it's your birthday, and then, finally, death.
But no, the term "aging schedule" has to do with accounts scheduling in business.
An aging schedule is a way to arrange a company's invoices and bills according to when they are due. Basically, you are figuring out when money is coming in and when it has to go out. This helps you arrange the company's short-term capital needs. Run out of cash, and you're pretty much dead.
Aging of accounts receivable is a carefully tracked metric that bean-counters use to figure out how well the company is collecting its bills, for example. If that aging schedule moves meaningfully from one period to another, it usually signals that either the company's business is falling off a cliff, i.e. it's selling a lot less product, so it suddenly has a lot less in accounts receivable; if the aging term shortens, it might mean that buyers are leaping to their checkbooks to quickly pay off obligations to the company so that they can buy more.
Related or Semi-related Video
Finance: What is work-in-process invento...3 Views
finance- a la shmoop. what is work-in-process inventory? your company
junk in the trunk makes enema kits for Elephants . what they get stopped up too. [tower with "junk in the trunk" written on it]
just need you know big bags. anyway so you've extruded ten thousand bags. you
need ten thousand giant hooks to hang the bags on palm trees and ten thousand
tube thingies for the you know de new mall. they cost you a total of 60 grand
to produce and are not yet packaged. the product isn't finished.
in fact the rubber hosing and so on has to be made of a special material that
takes three months to fully dry. you know that African climate is hell on rubber.
you also have four tons of rubber in blocks sitting around the factory floor [ants crawl across the floor]
with ants singing to it. and you have a mile of wire you'll eventually Bend into
bag hanging hooks it's just sitting in a coil.
alright you paid for the rubber blocks, and the wire already it's just sitting
there so these elements of product are in process. the product isn't finished
completed or ready to ship. so work in process inventory really just consists
of raw materials at various stages of production. and you know generally work
in processes just sitting on the factory floor versus out the door when it then
becomes a finished goods. and just remember that concept for you next time
you're unpacking a pachyderm. [woman in white coat peeks out from behind an elephant]
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