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

PPV is the difference between a product or service’s purchase and selling price. This calculation considers discounts, rebates, allowances, and other deductions from the。

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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