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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。

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

For example, if you save $5000 on a purchase order, this favorable PPV shows that your procurement practices are yielding cost savings and can be used as a benchmark for future。

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