Metrics & KPIsPPV
Definition
Purchase Price Variance Evaluating the Cost price of a product in reference to the price at a given period of time. Calculate as follows:- Purchase price's x qty purchased in Period 1(say in 2008 you purchased the item at different times at different prices) Purchase prices's x qty purchased in Period 2 Sum Period 1 and divide by total Qty(period 1) = ACP 1 Sum Period 2 and divide by total Qty(period 2) = ACP 2 Now the difference in ACP of period 1 & 2 is the variance which can be mu
Tags
purchase, variance, cost, price