Variance is the difference between standard or budgeted performance and actual performance. Adverse variance is excess of actual costs over standard (or shortfall in actual output from standard) which is analyzed for correction and improvement.

1) Overheads, which vary (almost) proportionately with the level of manufacturing activity or output. 2) Variable overheads comprise all indirect cost (not directly chargeable to the output) which largely varies with the value of output.

Variable cost ratio is the ratio of the variable cost to the value of sales. Lower this ratio, greater is the profit contribution for additional units produced and sold.

The cost that varies largely in proportion to the volume output. Examples are raw materials, wages paid on piece rate basis.

A quantity that can take different values. In a system or organization any facet or quality controllable by management constitutes a variable as distinct from parameters or environment which are given conditions and structure under which the organization has to function, such as the laws of the land.

Innate convictions that guide personal, organisational, and social behavior. These are guided by fundamental and universally accepted moral and ethical standards.

One who estimates or assesses values usually such an accredited person.

Preferred. Considered important.

Money or its equivalent given for a bill of exchange.

A subjective estimate of quality of decision.

Ratio of relative importance of a function to its relative cost. It shows the benefit-cost rating of different activities.

Same as value analysis, except that it includes appraisal of the product from the design stage through all manufacturing operations and cost to achieve the optimum value.

1) An analysis that divides activities according to whether and how far they add value to the output of any process. 2) A methodical appraisal of the function of each component of a is to get rid of unnecessary costs and thereby reduce total costs within the required value parameters.

A tax on the amount by which the value of an article has been increased at each stage of production.

1) The additional value that accrues to raw materials or components as they pass through the process of refining, manufacturing, assembly, packaging etc. Broadly, it equals sales value less raw materials and bought out items. 2) The amount by which the value of an article gets increased at each stage of its production, exclusive of initial costs.

1) Worth. 2) Amount for which a commodity can be exchanged in the market. 3) Utility as perceived by the user or consumers.

The degree to which a test, experiment or survey measures actually what is desired to measure; validity of sample relies on how far the sample is representative of the total population.

Ascertaining if the model is really a proper prototype of the actual system which is intended to be studied. The testing is done by feeding known data into the model and comparing the outcome yielded with the known result in the real case.

Limited free parking allowed at a place not far from the office or shop for parties who are provided with some official verification showing the time they have spent in the office or shop in the course of business.

Predecided holiday period. Usually refers to a long period.