TESSCO Technologies (TESS)

Product Inventory

        Product inventory, consisting primarily of finished goods, is stated at the lower of cost or market, cost being determined on the first-in, first-out ("FIFO") method and includes certain charges directly and indirectly incurred in bringing product inventories to the point of sale. Inventory is written down for estimated obsolescence equal to the difference between the cost of inventory and the estimated market value, based upon specifically known inventory-related risks (such as technological obsolescence and the nature of vendor terms surrounding price protection and product returns), and assumptions

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Table of Contents

Notes to Consolidated Financial Statements (Continued)

Note 2. Summary of Significant Accounting Policies (Continued)

about future demand. At fiscal year end 2009 and 2008, the Company has a reserve for excess and/or obsolete inventory of $2,681,100 and $2,655,600, respectively.

Product Inventory

        Product inventory, consisting primarily of finished goods, is stated at the lower of cost or market, cost being determined on the
first-in, first-out ("FIFO") method and includes certain charges directly and indirectly incurred in bringing product inventories to the point of sale. Inventory is written
down for estimated obsolescence equal to the difference between the cost of inventory and the estimated market value, based upon specifically known inventory-related risks (such as technological
obsolescence and the nature of vendor terms surrounding price protection and product returns), and assumptions

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HREF="#bg12101a_main_toc">Table of Contents

Notes to Consolidated Financial Statements (Continued)

Note 2. Summary of Significant Accounting Policies (Continued)

about
future demand. At fiscal year end 2009 and 2008, the Company has a reserve for excess and/or obsolete inventory of $2,681,100 and $2,655,600, respectively.

Product Inventory

Product inventory, consisting entirely of finished goods, is stated at the lower of cost or market, cost being determined on the first-in, first-out (“FIFO”) method and includes certain charges directly and indirectly incurred in bringing product inventories to the point of sale. Inventory is written down for estimated obsolescence equal to the difference between the cost of inventory and the estimated market value, based upon specifically known inventory-related risks (such as technological obsolescence and the nature of vendor terms surrounding price protection and product returns), and assumptions about future demand. At fiscal year end 2008 and 2007, the Company has recorded a reserve for excess and/or obsolete inventory of $2,655,600 and $2,984,100 respectively.

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Product Inventory

Product
inventory, consisting entirely of finished goods, is stated at the lower of
cost or market, cost being determined on the first-in, first-out (“FIFO”)
method and includes certain charges directly and indirectly incurred in
bringing product inventories to the point of sale. Inventory is written down for estimated
obsolescence equal to the difference between the cost of inventory and the
estimated market value, based upon specifically known inventory-related risks
(such as technological obsolescence and the nature of vendor terms surrounding
price protection and product returns), and assumptions about future demand. At
fiscal year end 2008 and 2007, the Company has recorded a reserve for excess
and/or obsolete inventory of $2,655,600 and $2,984,100 respectively.

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Product Inventory

Product inventory is stated at the lower of cost or market, and as a result, write-offs/write-downs occur due to damage, deterioration, obsolescence, changes in prices and other causes. Cost is determined using the first-in, first-out (FIFO) method and includes certain charges directly and indirectly incurred in bringing product inventories to the point of sale. At fiscal year end 2007 and 2006, the Company has recorded a reserve for excess and obsolete inventory of $2,984,100 and $3,301,300 respectively.

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Product Inventory

Product inventory is stated at the lower of cost or market. Cost is determined using the first-in, first-out (FIFO) method and includes certain charges directly and indirectly incurred in bringing product inventories to the point of sale. Inventory is accounted for at the lower of cost or market, and as a result, write-offs/write-downs occur due to damage, deterioration, obsolescence, changes in prices and other causes.

Product Inventory

Product inventory is stated at the lower of cost or market. Cost is determined using the first-in, first-out (FIFO) method and includes certain charges directly and indirectly incurred in bringing product inventories to the point of sale.