| RETURN TO GLOSSARY INDEX | |
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Value added |
Sales revenue less bought out goods and services. It measure the wealth created by the workforce |
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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. |