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

Variance analysis can help companies manage projects, productions or operational expenses by monitoring planned versus actual costs. Creating an effective analysis can help businesses maintain and improve operations.

Explore What is PPV?, learn what causes price variances, discover why organisations use PPV, find out how to calculate it and see some example calculations.

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