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Purchase Price Variance (PPV)

Purpose -

Measures price fluctuations from the expected purchase price.

Operational Definition -

(Actual Purchase Price - Standard Purchase Price) / Standard Purchase Price × 100

Type of Metrics -

KPI

Function -

Finance

Associate Function -

Finance

Desired Trend -

Lower the better

Recommended Frequency - 

Monthly

External References -

https://kissflow.com/procurement/procurement-kpis/

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