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PPV can be either favorable or unfavorable and may be tracked for specific time periods (monthly, quarterly, yearly). It is often reported in terms of total procurement spend. Purchase price variance is an important metric for。

Purchase price variance (PPV) measures the difference between the actual price paid for goods/servippv inventory meaningces and the standard price. Favorable PPV indicates cost savings through effective 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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