In a stored PROCEDURE, I can add the v_bar local variable as follow:
CREATE OR REPLACE PROCEDURE A_PROC (
    foo        VARCHAR2
)
AS 
    v_bar  VARCHAR2(32);  
BEGIN
    SELECT FOO into v_bar WHERE ...;
END A_PROC ;
Question
How should v_bar be declared in the function below ?
CREATE OR REPLACE FUNCTION A_FUNC(
    foo        VARCHAR2
) RETURN NUMBER AS total NUMBER;
BEGIN
  -- Where to declare v_bar ?
  v_bar := 'bla';
END A_FUNC;
                A function can have OUT or IN OUT parameters, but this is bad coding practice. A function should have a return value and no out parameter.
After the declaration, PL/SQL allocates memory for the variable's value and the storage location is identified by the variable name. Syntax for declaring variable: Following is the syntax for declaring variable: variable_name [CONSTANT] datatype [NOT NULL] [:= | DEFAULT initial_value]
There are two types of variable in SQL-plus: substitution and bind. This is substitution (substitution variables can replace SQL*Plus command options or other hard-coded text):
Actually all we need to do here is concatenate the v_out. "V_out:=v_out || item. My_name" and we are done.
Exactly the same; no difference. For example:
create or replace function a_func (foo in varchar2)
  return number 
as
  total number;
  -- v_bar varchar2(32);
  v_bar number;    --> should match RETURN datatype
begin
  select foo into v_bar from ...;
  total := v_bar * 1000;
  return v_bar;
end;  
                        You can declare a variable after the 'as' or 'is' clause.
CREATE OR REPLACE FUNCTION A_FUNC(
foo        VARCHAR2
) RETURN NUMBER 
as
v_bar     VARCHAR2(32);  --Variable declared
v_bar_no  NUMBER(10);    --Variable declared
BEGIN
  -- Now you can use this variable
  v_bar := 'bla';
END A_FUNC;
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