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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.

Business stakeholders can prepare PPV forecasts by analyzing historical pricing data, finding the price development patterns, and applying them to the current market situation. The rationale behind using a standard 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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