What is Purchase Price Variance (PPV) and How to Calculate it?
SCMDOJO
MARCH 24, 2025
This is where Purchase Price Variance (PPV) plays a crucial role and as per Emiliani, (2010), helps strategy makers evaluate spending and create well-structured cost-saving strategies. This negative variance can result from bypassing defined procurement processes, Internal mismanagement, or ineffective price negotiations with suppliers.
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