##### Tag: PPV

[Purchase Price Variance](/content/purchase-price-variance/index.html)

#### [What is Purchase Price Variance? Why and How is it Calculated?](/content/purchase-price-variance/what-is-purchase-price-variance-why-and-how-is-it-calculated-ppv/index.html)

In Procurement, Purchase Price Variance (PPV) is the difference between the standard price of a purchased material and its actual price. In Short, Purchase Price Variance = (Actual price – Standard price) x Quantity purchased.