PPV (Purchae Price Variance)
Purchase Price Variance (PPV) is the difference between the price budgeted for an item and the actual price paid for that item. In procurement, PPV can be used to measure the efficiency of purchasing decisions and indicate whether there is adequate control over pricing in the purchasing process. Companies should strive to achieve a PPV as close to zero as possible; this implies that their purchasing decisions were well-informed and taken in line with their budgeting restrictions.
