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).
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。
Purchppv meaning financease 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.
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ppv meaning finance|How to Calculate and Forecast Purchase Price Variance (PPV)
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