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Read more: Cost Variance: Definition, Formula and Examples Why is PPV important? Most manufacturers agree that raw materials take up most of their running costs,。

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

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。

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