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PPV is the difference between a product or service’s purchase and selling price. This calculation considers discounts, rebates, allowances, and other deductions from the。

Purchasing departments measure PPV when they purchase raw materials. If there is a significant price variance, it needs to be reclassified into the inventory of raw materials, inventory of work-in-progress, cost of products, and。

The actual cost may have been taken from an inventory layering system, such as a first-in first-out system, where the actual cost varies from the current market price by a。

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