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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。

It is the difference between the budgeted or standard price of an item 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 the difference between the standard cost (also known as baseline price) paid on a specific item or service and the actual amount you paid to。

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