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Purchase price variance is a financial metric used in procurement and supply chain management to assess the difference between the expected (also known as standard or baseline) cost of an item and its actual purchase cost. PPV measures the gap between what the company planned to pay for a product or service and what they actually paid.

Purchase Price Variance (PPV) reflects the difference between the actual amount paid for a product or service ppv meaning financeand the standard or expected amount for the same. It is a crucial metric in cost accounting. This value indicates the impact of fluctuations in purchase prices on。

What Is Price Variance in Cost Accounting? Price variance is the actual unit cost of an item less its standard cost, multiplied by the quantity of actual units purchased. The standard cost...

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