Category Archives: BusinessDictionary

conceptual budgeting

The preparation of a rough cost estimate, made without any concrete data, during the conceptual phase of a project. The goal is to establish cost parameters in advance of a defined project plan. also called order of magnitude budgeting or conceptual estimating. Read more:

concept testing

Process in which a new product idea is thoroughly analyzed with the help of a mockup and/or computer models. Read more:


Model or replica built full-size or to scale for testing or training purposes. Read more:

mock auction

A scam run by experts who set up a mock auction and put on a show by appearing to sell high-quality products at very low prices. The initial bidders are usually part of this gang of experts and eventually give everything back to the group. Convinced that they will be able to get something of

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mobilization base

1.Facility or place from where a contractor’s resources are mobilized. 2.Total of all resources that are available or can be made available for mobilization. Read more:

mobility of labor

Extent to which the workers are able or willing to move between different jobs, occupations, and geographical areas. It is called horizontal mobility if it does not result in a change in the worker’s grading or status, and vertical mobility if it does. Skilled workers have low occupational mobility but high geographical mobility; low-skilled or

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vertical mobility

Type of social movement when a person or group moves up or down in status. Vertical mobility can also apply outside of social situations to any type of movement that goes up or down a hierarchy of some type. Read more:

vertical market system (VMS)

Formally or informally coordinated distribution channel where its independent members work together to achieve greater efficiency and economies of scale, and to eliminate channel-conflict arising out of disparate individual objectives. Three common types of VMS are: (1) Administered: coordination between production and distribution firms is achieved by the size and influence of the dominant firm,

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backward integration

Type of vertical integration in which a consumer of raw materials acquires its suppliers, or sets up its own facilities to ensure a more reliable or cost-effective supply of inputs. Read more: