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CHAPTER 8
Lien:
A right by which one person, usually a creditor, has to retain
possession of the goods of another until such time as the owner of
the goods clears his liabilities. A common instance of a lien is the
right of a carrier to retain possession of the goods and not deliver
these until his charges are paid.
Life-cycle costing:
A procurement technique for evaluation of tenders/offers that
considers, in addition to acquisition costs (price), other elements of
maintenance, operating, etc.. In evaluating different supply tenders/
offers this enables the buyer to compare and select the one with
the lowest total cost for the entire period over which the product is
expected to be in use. See also Analysis of tenders, Tabulation of
tenders and Tender evaluation.
Liquidated damages:
Damages that become due owing to one of the parties to a contract
when the other party fails to fulfil his contractual obligations, that is,
there is a breach of contract on his part. Liquidated damages are
usually specified in the contract itself and need not be related to an
actual loss. See also Penalty clause.
List price:
The prices published in a catalogue or any similar publication by a
producer (or trader) from time to time. Often list prices are indicative
prices on which discounts are offered. See also Discount.
Mandatory standard:
A standard of which the application has been made mandatory by
a regulation. See also Standard.
Manifest:
A detailed list of cargo being carried on board by a carrier (e.g.
vessel or aircraft), including quantity, identifying marks, consignor
and consignee of each item. This is made or signed by the captain
of the vessel or aircraft. A copy is handed over to customs. Copies
of the manifest are also sent to the ship’s agents at ports of call.
Marginal costing:
The extra cost of increasing production by one or more units. It
includes only the variable cost (direct costs) and no element of
fixed costs (overheads).
Mark of conformity:
A mark attesting that a product or a service is in conformity with
specific standards or technical specifications.
Market analysis:
Information required to make an assessment of market conditions
such as demand and supply conditions, prices, discounts, etc.
to enable a buyer to make the right purchase decision. Besides
information through formal channels or a survey it also includes
information through informal channels such as agents, other buyers,
etc. See also Sourcing.
Market leader:
Brand and/or product with the largest market share. Often refers to
the company producing and marketing the brand/product concerned.
See also Price leadership.
GLOSSARY