What Is Perceived Value? In marketing terminology, perceived value is the customers’ evaluation of the merits of a product or service, and its ability to meet their needs and expectations, especially in comparison with its peers. Marketing professionals try to influence consumers’ perceived value of a product by describing the attributes that make it superior
What Is Percentage Change? Percentage change is used for many purposes in finance, often to represent the price change of a stock over time, expressed as a percentage. The formula used to calculate this change as a percentage is a simple mathematical concept that varies slightly depending on whether the change is an increase or
What Is Percentage Depletion? Percentage depletion is a tax deduction for depreciation allowable for businesses involved in extracting fossil fuels, minerals, and other nonrenewable resources from the earth. Key Takeaways The depletion allowance has made oil and gas at the wellhead one of the most tax-advantaged investments available. The deduction is intended to incentivize domestic
What Is a Percentage Lease? A percentage lease is a type of lease where the tenant pays a base rent plus a percentage of any revenue earned while doing business on the rental premises. It is a term used in commercial real estate. A percentage lease agreement generally decreases the base rate for lessees and
What Is the Percentage of Completion Method? The percentage of completion method is an accounting method in which the revenues and expenses of long-term contracts are recognized as a percentage of the work completed during the period. This is in contrast to the completed contract method, which defers the reporting of income and expenses until a project is completed.
What Does Per Diem Mean? Per diem, from the Latin for by the day, refers to daily allowances paid to employees to cover costs incurred while on a business trip. Business expenses that are covered typically include accommodation, food, and other incidental expenses such as fees and tips for services. Per diem can also refer
What Is Perfect Competition? The term perfect competition refers to a theoretical market structure. Although perfect competition rarely occurs in real-world markets, it provides a useful model for explaining how supply and demand affect prices and behavior in a market economy. Under perfect competition, there are many buyers and sellers, and prices reflect supply and demand.
What Is a Perfected Lien? A perfected lien is a lien that has been filed with the appropriate filing agent in order to make the securing interest in an asset binding. A lien is used in secured loans and integrated into the lending contract. Liens can also be involved in other special situations. A perfected lien provides legal documentation
What Is a Perfect Hedge? A perfect hedge is a position by an investor that eliminates the risk of an existing position, or a position that eliminates all market risk from a portfolio. Rarely achieved, a perfect hedge position needs to have a 100% inverse correlation to the initial position. Understanding a Perfect Hedge A perfect
What Is a Performance Audit? A performance audit is an independent assessment of an entity’s operations to determine if specific programs or functions are working as intended to achieve stated goals. Performance audits are typically associated with government agencies at all levels as most government bodies receive federal funding. Key Takeaways A performance audit is
