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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)

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

Related: What Is PPV in Accounting? How to Record It in Your Books Auditing This branch of accounting is ewhat is ppvither internal or external, depending on the entity performing it.

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