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Purchase Price Variance or PPV is a metric used by procurement teams to measure the effectiveness of the organisation’s or individual’s ability。

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,。

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。

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