GLOSSARY of Costing & Management Accounting Terms-Alphabet V

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Value added	Sales revenue less bought out goods and services. It measure the wealth created by the workforce
Value analysis	A systematic and analytical technique of analyzing all aspects of a product in order to determine whether costs can be reduced without affecting the quality.
Variable budget	Refers to as flexible budget
Variable costing	Refers to direct or marginal costing
Variable costs	Costs that vary directly with the level of activity
Variable overhead efficiency variance	The difference between the variable overhead incurred and the amount of variable overhead that should have been incurred for the actual hours worked
Variable overhead expenditure variance	The difference between actual hours worked and the standard hours in actual output multiplied by the standard overhead rate.
Variance	The difference between actual results and planned results
Variance analysis	The investigation and classification of variances. The variances are analyzed into constituent parts so that corrective actions can be taken and responsibility pinpointed.
Volume	Level of activity. It has a significant effect on the amount of costs. It can be measured in units, hours,etc.