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

PPV, also known as purchase price variance, is a term used in procurement to refer to the difference between the market rate of a bought item and its actual price.

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。

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