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PPV can be either favorable or unfavorable and may be tracked for specific time periods (monthly, quarterly, yearly). It is often reported in terms of total procurement spend. Purchase price variance is an important metric for。

The actual cost may have been taken from an inventory layering system, such as a first-in first-out system, where the actual cost varies from the current market price by a。

Purchase price variance (PPV) measures the difference between the actual price paid for goods/services and the standard price. Favorable PPV indicates cost savings through effective sourcing and negotiations, while。

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