What is Purchase Price Variance (PPV) and How to Calculate it?
SCMDOJO
MARCH 24, 2025
Unfavorable PPV Unfavorable PPV occurs when the actual price or purchase cost exceeds the standard price or estimated cost, leading to higher expenses. This negative variance can result from bypassing defined procurement processes, Internal mismanagement, or ineffective price negotiations with suppliers. worry no more!
Let's personalize your content