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What is Purchase Price Variance (PPV) and How to Calculate it?

SCMDOJO

Purchase Price Variance (PPV) can either be categorized as Favorable PPV or Unfavorable PPV. However, due to bulk purchasing negotiations, the company secures a discount and purchases the material at $4.50 What Causes Unfavorable Purchase Price Variance (PPV)? per unit, reducing the actual cost to $90,000.

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