PPV
Finance
PPV (Purchase Price Variance)
Purchase Price Variance
Difference between actual purchase price and standard or budgeted purchase price, multiplied by quantity.
Examples
- 01The PPV for copper wire is EUR 12,000 unfavourable this month because the market price rose above the standard price.
- 02Purchasing reviews PPV by material group each month to separate market effects from negotiation results.
- 03Buyers are not rewarded for a positive PPV if it comes from buying too much stock at once and raising inventory.