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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.

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。

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

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