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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.

In this article, we answer What is PPV?, outline what causes variances in the purchase price what is ppvof products and services, discuss why organisations use PPV, explain how to calculate it and review some examples.

Heres the formula to calculate purchase price variance: Purchase price variance = (Actual quantity x Standard price) − Actual quantity x Actual price Related: What Is PPV in Accounting? (How to Record It in Your Books)

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