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Purchase price variance (PPV) is the difference between the standard cost (also known as baseline price) paid on a specific item or service and the actual amount you paid to acquire it. PPV can be either favorable or unfavorable and may be tracked for specific time periods (monthly, quarterly, yearly).

Purchase Price Variance (PPV) reflects the difference between the actual amount paid ppv meaning financefor a product or service and 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 PPV (Purchase Price Variance)? It is the difference between the budgeted or standard price of 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 price。

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