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Purchase Price Variance or PPV is a metric used by procurement teams to measure the effectiveness of the organisation’s or individual’s ability。

Purchase Price Variance (PPV) is an indispensable performance metric for businesses aiming to closely monitor and control their procurement spending. It provides invaluable insights into the alignment of actual spending。

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。

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