Glossary

A packaging method where all of the air is mechanically removed from the package prior to sealing, in order to prevent the growth of certain microorganisms and enzymatic reactions.

The action of testing an idea prior to launch, allowing you to develop the business to reflect customer feedback.

Any step in the production process that improves the product for the customer and results in a higher net worth (or value). All processed foods are the result of value-adding to basic food commodities, for example, wheat to bread.

Value adjustments involve adjusting the value of certain assets in the accounts to better reflect their current worth.

A company’s promise of value that communicates why buyers should choose their products or services.

The principles and beliefs that guide what a business does and how it does it.

Costs that vary in line with a business level of sales.

An expense that is proportional to the amount of merchandise sold. Includes equipment and supplies used to price merchandise, as well as any special packages that customers need to take merchandise home.

The practice of carrying a complete line of a brand and several different brands, so that customers will have the widest possible choice.

A transportation routing plan designed to maximize fleet utilization.