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What is Purchase Price Variance (PPV)? Companies that are selling products are either in control of the manufacturing or implementation。

Purchase price variance (PPV) measures the difference between the actual price paid for goods/services and the standard price. Favorable PPV indicates cost savings through ppv inventory meaningeffective sourcing and negotiations, while。

Purchasing departments measure PPV when they purchase raw materials. If there is a significant price variance, it needs to be reclassified into the inventory of raw materials, inventory of work-in-progress, cost of products, and。

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