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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)

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.

Explore What is PPV?, learn what causes price variances, discover why organisations use PPV, find out how to calculate it and see some example calculations.

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