Terms
V
variable cost: the cost associated with
using variable inputs, which rises with the quantity of
output
variable costs: Costs directly driven by
the volume of product flow.
variable expenses: Pertains to a personal
cash flow statement. Expenses over which we have some control
such as food, clothing and automobile expenses.
variable input: an input to production,
the quantity of which can be quickly changed, resulting
in changes in the level of production
variable pricing strategy: Marketing approach
that sets more than one price for a good or service in order
to offer price concessions to certain customers.
venture capita:l High-risk capital provided
to growth ventures in exchange for significant ownership
in the venture.
venture capitalist: Representative of a
company providing high-risk capital to growth ventures.
vertical analysis: Process of using a single
variable on a financial statement as a constant and determining
how all of the other variables relate as a percentage of
the single variable.
vertical integration: expansion of a firm
achieved though adding new products to its output, where
the new products are related to the old, but represent different
stages of production
vertical Spread: describes portfolio of
different call or put options that differ only by the strike
prices. “Vertical” refers to the way option
prices are listed in the financial press.
volatility: The degree to which a security's
price rises or falls within a specific time period.
