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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.

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.

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