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Purchase Price Variance is the difference between the Actual Price paid to buy an item and the Standard Price, multiplied by the Actual Quantity of units purchased. Here is the formula: PPV = (Actual Price – Standard Price) x。

Purchase Price Variance (PPV) is a key performance indicator (KPI) that procurement specialists and finance professionals use to monitor cost efficiency in purchasing activities.

It is the difference between the budgeted or standard price ofppv business meaning an item and the actual amount paid to acquire that item. Think of it as a financial reflection of how a company’s purchasing strategies perform against market。

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