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In accounting, purchase price variance (PPV) accounts for the potential change in value of materials from when theyre purchased to when theyre recorded. Understanding PPV can help you manage a companys accounting process。

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.

Variance analysis can help companies manage projects, productions or operational expenses by monitoring planned versus actual costs. Creating an effective analysis can help businesses maintain and improve operations.

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