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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 importanppv inventory meaningt metric for。

For example, if you save $5000 on a purchase order, this favorable PPV shows that your procurement practices are yielding cost savings and can ppv inventory meaningbe used as a benchmark for future。

Purchase price variance is a financial metric used in procurement and supply chain management to assess the difference between the expected (also known as standard or baseline) cost of an item and its actual purchase cost. PPV measures the gap between what the company planned to pay for a product or。 See more

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