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A positive PPV means that the actual price that the company paid is higher than their anticipated price A negative PPV, on the other hand, means that the actual cost is lower than the budgeted one. Negative variance means。

Most finance teams look to the purchase price variance (PPV) metric for answers. It’s a simpppv finance meaningle metric, but it can have broad implications for your procurement team and its。

PPV is not a direct expense in itself. A favorable PPV contributes to cost savings and higher profitability. This value does not directly appear on financial statements. However, it influences the cost of goods sold and impacts overall。

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