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It is the difference between the budgeted or standard price of an itppv business meaningem and the actual amount paid to acquire that item. Think of it as a financial reflection of how a company’s purchasing strategies perform against market。

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。

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

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