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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 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。

PPV, also known as purchase price variance, is a term used in procurement to refeppv business meaningr to the difference between the market rate of a bought item and its actual price.

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