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Purchase Price Variance (PPV) is an indispensable performance metric for businesses aiming to closely monitor and control their procurement spending. It provides invaluable insights into the alignment of actual spending。

A positive PPV means the goods cost more than you estimated, and the cost of goods has increased. A negative PPV means the goods cost less than your estimate, and the business saved money.

Purchase Price Variance (PPV) is a key performance indicator (KPI) that procurement specialists and finance professionals use to monitor cost efficiency in purchasing activities.

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