Purchase Price Variance (PPV)
PPV is important for budgeting and planning purposes, particularly when companies are deciding what quantities of items to order.
PPV = (Actual Price - Standard Price) x Quantity
Formula used in these DataSelf templates:
_Purchase_Order: Purchase Price Variation PPV by Company, Item, Item Cat, Vendor, & Whse.
The
Item Std Cost
calculated measure usually requires adjustments.
Further info:
https://www.investopedia.com/ask/answers/052215/what-price-variance-cost-accounting.asp