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Purchase Price Variance (PPV) is a key performance indicator (KPI) that procurement specialists and finance professionals use to monitor cost efficiency in purchasing activities.

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

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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