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What Is Price Variance in Cost Accounting? Price variance is the actual unit cost of an item less its standard cost, multiplied by the quantity of actual units purchased. The standard cost...

Purchase price variance (PPV) is the difference between the standard cost (also known as baseline price) paid on a specific item or service and the actual amount you paid to acquire it. PPV can be either favorable or unfavorable and may be tracked for specific time periods (monthly, quarterlppv meaning financey, yearly).

Purchase Price Variance (PPV) reflects the difference between the actual amount paid for a product or service and the standard or expected amount for the same. It is a crucial metric in cost accounting. This value indicates the impact of fluctuations in purchase prices on。

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