Purchase Price Variance Calculator

Answers the Question

How much more have we paid than industry standards?

Calculator for Purchase Price Variance


What Is the Purchase Price Variance?

Under capitalism, many suppliers compete with each other in order to attract customers. One of the methods employed in competitive markets is price modification. This is doubly true in commoditized marketplaces. The higher the purchase price variance, all things being equal, the lower the profitability for your project.

Why Is it Important?

Formula(s) to Calculate Purchase Price Variance

Common Mistakes

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