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VAD
, in business, can mean: Value of Annual Demand,
Value-Added Data, Value-Added Dealer, or, Value-Added Distributor.
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VALIDATE
is to a. declare or make legally
valid; b. mark with an indication of official sanction; or, c. to establish
the soundness of; corroborate.
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VALUATION ALLOWANCE/RESERVE
is an allowance
to provide for changes in the value of a company's assets, such as depreciation
or if an asset is deemed impaired.
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VALUATION DATE
is the day when the
evaluation has been made or the date when the evaluation applies.
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VALUE ADDED
is the difference, at each
stage of production or the provisioning of a service, between the price
of a product or service and all materials or activities paid for to produce
the product or provide the service.
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VALUE ADDED VERTICAL INTEGRATION
is
controlling as much of the build stream, both upstream and downstream,
in producing a product or service as possible while ensuring that every
part of the stream provides added value. See also VALUE ADDED and VERTICAL
INTEGRATION.
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VALUE CHAIN
is the sequential set of
primary and support activities that an enterprise performs to turn inputs
into value-added outputs for its external customers. As developed by Michael
E. Porter, it is a connected series of organizations, resources, and knowledge
streams involved in the creation and delivery of value to end customers.
Value systems integrate supply chain activities, from determination of
customer needs through product/service development, production/operations
and distribution, including (as appropriate) first-, second-, and third-tier
suppliers. The objective of value systems is to position organizations
in the supply chain to achieve the highest levels of customer satisfaction
and value while effectively exploiting the competencies of all organizations
in the supply chain.
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VALUE CREATION
is performing activities
that increase the value of goods or services to consumers.
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VALUE FOR MONEY
is in 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. Examples of the types of factors that may be
considered are suitability, quality, skills, price, whole of life costs
and other criteria. The mix of these and other factors and the relevant
importance of each will vary on a case by case basis.
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VALUE IN USE
is the value of an asset
in the opinion of the owner.
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VALUE MANAGEMENT
is the application
of established techniques to help define and refine business need, delivery
strategy and the best value concept by setting customer objectives and
values and determining success criteria for the project.
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VALUE STOCK
is a stock that trades
at a lower price relative to it's fundamentals (i.e. earnings, dividends,
sales, etc.); thereby being considered undervalued by a value investor.
Common characteristics of such stocks include a high dividend yield,
low price-to-book ratio and/or low price-to-earnings ratio.
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VARIABLE EXPENSES
are those business
expenses that usually fluctuate dependent upon production or sales volume.
Contrast with FIXED EXPENSES.
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VARIABLE INTEREST RATE
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.
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VARIANCE
, 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.
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VARIANCE ANALYSIS
is the analysis
of performance by means of variances. Used to promote management action
at the earliest possible stages. After a budget (based on standard costs)
has been set, its usefulness lies in the review procedures which compare
actual results against the budget. Variance analysis is the process of
examining in detail each variance between actual and budgeted/expected/standard
costs to determine the reasons why budgeted results were not met (material
costs too high, sales prices too low, etc.).
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VC
is Venture Capital(ist) or Variable Cost. See also
VENTURE CAPITAL, VENTURE CAPITALIST or VARIABLE COSTS.
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VEBA
is Voluntary Employees' Benefits
Association.
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VENDOR
is a legal entity that promotes
or exchanges goods or services for money.
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VENDOR MANAGED INVENTORY (VMI)
is a
process in which a supplier generates orders for its distributor based
on demand information sent by the distributor. Vendor Managed Inventory
was first applied to the grocery industry, between companies like Procter
& Gamble (supplier) and Wal-Mart (distributor). But increasingly,
Vendor Managed Inventory is providing the benefits of smoother demand,
increased sales, lower inventories and reduced costs to other industries.
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VENDOR STATEMENT
is a statement by
the seller to the buyer detailing material particulars regarding the property
in question (suitability for intended use).
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VENTURE
is an investment that is very
risky but could yield great profits.
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VENTURE CAPITAL
is capital committed to an unproven
venture. The initial, start-up money is referred to as "seed money"
and entails the greatest risk. If the project gets off the ground it may
require additional financing at additional "rounds" or the "mezzanine
level" before the company is finally brought to the market and the
venture capitalist can enjoy handsome rewards. Experienced investors in
venture capital situations typically plan on turning away a minimum of
9 out of every 10 proposals which are brought to them, and then they expect
as many failures as successes from their selected investments.
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VENTURE CAPITALIST (VC)
is a professional
equity-based investor. He/She manages one or more venture capital funds
looking for suitable high-reward investments. VC investment are normally
in riskier start-up or expansion ventures. Being high-risk investors,
venture capitalists normally look for a substantially higher rate of
return than might be realized in more traditional investments. See ANGEL
INVESTOR.
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VERIFIABILITY
is where the fact is
capable of being tested (verified or falsified) by experiment or observation.
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VERTICAL FINANCIAL ANALYSIS
allows
comparison of the financial ratios of a company in time – past,
present and future.
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VERTICAL INTEGRATION
is the extent
to which a firm owns its upstream suppliers and its downstream buyers.
Control upstream is referred to as backward integration (towards suppliers
of raw material), while control of activities downstream (towards the
eventual buyer) is referred to as forward integration.
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VESTED
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VET, VETTED, VETTING
is to make a
careful and critical examination of someone or something, e.g. a person
prior to employment.
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VIABILITY
, in economics, is the capability
of developing and surviving as a relatively independent social, economic
or political unit.
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