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Read more: Cost Variance: Definition, Formula and Examples Why is PPV importantppv inventory meaning? Most manufacturers agree that raw materials take up most of their running costs,。

Purchase price variance is a financial metric used in procurement and supply chain management to assess the difference between the expected (also known as standard or baseline) cost of an item and its actual purchase cost. PPV measures the gap between what the company planned to pay for a product or。 See more

The actual cost may have been taken from an inventory layering system, such as a first-in first-out system, where the actual cost varies from the current market price by a。

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