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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。

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 reflectionppv business meaning of how a company’s purchasing strategies perform against market。

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 moneyppv business meaning.

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