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Value -
1.the amounts at which items are stated in financial
records and statements. Value is expenditures or amounts
deemed to benefit future periods. Or 2. highly subjective
term, usually an expression of monetary worth applied to a
particular asset, group of assets, business entity, or
services rendered. It should not be confused with the term
cost even though it is frequently measured, equated, and
identified by it. Thus the term should be used with an
appropriate modifying adjective. Or 3. represented by the
amount of goods, services, or money necessary to complete an
exchange for a specific commodity. In economic terms, value
of goods equals price multiplied by quantity.
Value (of a business)
- The amount a business is worth to a stakeholder
or any other interested party.
Value added
- The value of a firms output minus the value of inputs
bought from other firms.
Value added tax (VAT - applies to many countries) -
A general tax applied at each point of exchange of
goods or services from primary production to final
consumption. It is levied on the difference between
the sale price of the goods or services to which the tax is
applied, and the cost of the goods or services brought into
use in production.
Value analysis
- A procedure to evaluate a product after
manufacture to see how costs may be reduced.
Value chain
– Refers to a linked set of all value-creating processes or activities that convert
basic input materials into products or services for the
final consumer.
Value engineering
- A procedure designed to reduce and avoid
unnecessary costs before production begins. ~
Value for money
– Refers to
the perception of the buyer or receiver of goods and/or services. Proof
of good value for money is in believing or concluding that
the goods/services received was worth the price paid.
Value in use
– Refers to the discounted value of net cash receipts to be obtained from the corporate
asset.
Value
of the marginal product
- The marginal product of an input times the price of the
output.
Variable
- Any well-defined item, such as the price of a good or its
quantity, that can take on various specific
values.
Variable cost
- A cost that varies with output levels.
Variable
costing
– Is a costing method in which the costs to be inventoried
include only the variable manufacturing costs.
Fixed factory overhead is treated as a period cost-it is
deducted along with the selling and administrative expenses
in the period incurred.
Variable expenses
– Refers to those business expenses that usually fluctuate dependent upon production
or sales volume.
Variable factor
-
An input
that can be varied by any desired amount in the short run.
Variable interest rate
– This
is an interest rate that moves up and down based on the
changes of an underlying interest rate index, e.g. a credit
card might have a variable rate that is a certain spread
over the prime rate.
Variable inputs
- Those inputs whose quantity used can be varied in the
short run.
Variance
- The average deviation of all figures from the mean, which
removes plus and minus signs by 'squaring' the deviation
figure. Or in accounting, is the difference between a
projected number and the actual number, e.g. 1. a budget
variance is spending either more or less from the amount
that was budgeted; and 2. a cost variance is the difference
between actual cost and standard cost in the categories of
direct material, direct labor, and direct overhead.
Variance analysis
- The process of calculating variances and attempting to
identify their causes. This is done by comparing the actual
results with the budgeted or predicted results and
investigating any discrepancies.
VAT
– Value added tax.
Velocity of circulation
-
National
income divided by quantity of money.
Vendor –
Refers to a legal entity that promotes or exchanges goods or
services for money.
Vendor rating
- A method of measuring and evaluating the performance of
suppliers.
Vent for surplus
- When international trade enables a country to exploit
resources that would otherwise be unused.
Venture
capital –
This is
a
financing source for new businesses or
turnaround ventures that usually combine much risk with
potential for high return.
Venture capitalists
- Providers of funds for small or medium sized companies
that may be considered too risky by other investors.
Verifiable
– This
means
confirming or substantiating an item. The term refers to the ability of
accountants to ensure that accounting information is what it
purports to be.
Verifiability –
This is
where the fact is capable of being tested (verified or
falsified) by experiment or observation.
Vertical
equity
- The idea that taxpayers with a greater ability to pay
taxes should pay larger amounts.
Vertical financial analysis –
This is
drawing a comparison of the financial ratios of a company in
time – past, present and future.
Vertical integration
– Is the
combination of a parent firm and the suppliers of its raw
materials or purchasers of its finished product. Vertical
merger extends the lines of distribution or production,
either backward toward the source or forward toward the
end-user.
Very
long run
- A period of time that is long enough for the technological
possibilities available to a firm to change.
Viability –
Means having the capability of developing and surviving as
a relatively independent social, economic or political unit.
Visible balance
- The balance of money received from exports of goods and
money spent on the import of goods.
Visibles
- All items of foreign trade that are tangible; goods as
opposed to services.
Visible trade
- The exports and imports of goods.
Voluntary export restriction (VER)
- An agreement by an exporting country to limit the amount
of a good exported to another country.
Volume gain –
This means
to obtain advantages due to increase in volume, such as
value increase, points in gross margin or profit.
Voucher
– Refers to a form used in an internal control system to contain and verify
all information about a bill to be processed or paid.
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