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Purchase price variance (PPV) measures the difference between the actual price paid for goods/services and the standard price. Favorable PPV indicates cost savings through effectippv inventory meaningve sourcing and negotiations, while。

PPV is the difference between a product or service’s purchase and selling price. This calculation considers discounts, rebates, allowances, and other deductions from the。

PPV can be either favorable or unfavorable and may be tracked for specific time periods (monthly, quarterly, yearly). It is often reported in terms of total procurement spend. Purchase price variance is an important metric for。

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