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Purchasing departments measure PPV when they purchase raw materiappv inventory meaningls. 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。

Read more: Cost Variance: Definition, Formula and Examples Why is PPV important? Most manufacturers agree that raw materials take up most of their running costs,。

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。

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