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For example, if you save $5000 on a purchase order, this favorable PPV shows that your procurement practices are yielding cost savings and can be used as a benchmark for future。

PPV is the difference between a product or service’s purchase and selling price. This calculation considers discounts, rebates, allowances, and other deductions from the。

Purchasing departments measure PPV when they purchase raw materials. If therppv inventory meaninge is a significant price variance, it needs to be reclassified into the inventory of raw materials, inventory of work-in-progress, cost of products, and。

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