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In accounting, purchase price variance (PPV) accounts for the potential change in value of materials from when theyre purchased to when theyre recorded. Understanding PPV can help you manage a companys accounting process。

In this article, we answer What is PPV?, outline what causes variances in the purchase price of products and services, discuss why organisations use PPV, explain how to calculate it and review some examples.

What Is PPV? (With Examples and Tips for Reducing) Discover what PPV is, why its important and how to calculate it, with tips for reducing PPV to help increase profit margins for your organization.

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