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

In accounting, purchase price variance (PPV) accounts for the potential change in value of materials from when theyre purchased to when theyre recorded. Understanding PPV can help you manage a companys accounting process。

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.

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