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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 perform against market。

Purchase Price Variance or PPV is a metric used by procurement teams to measure the effectiveness of the organisation’s or indppv business meaningividual’s ability。

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