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 Additionally, poor management in identifying specific needs and required quantities can lead to higher-than-expected costs.
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