What is Purchase Price Variance (PPV) and How to Calculate it?
SCMDOJO
MARCH 24, 2025
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 Inflation has always been a top concern for higher management, as it is beyond the control of both suppliers and buyers.
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