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Purchase Price Variance (PPV) is a key performance indicator (KPI) that procurement specialists and finance professionals use to monitor cost efficiency in purchasing activities.

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 peppv business meaningrform against market。

A positive PPV means the goods cost more than you estimated, and the cost of goods has increased. A negative PPV means the goods cost less than your estimate, and the business saved money.

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