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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。

In this article, we answer What is PPV?, outline what causes variances in the purchase price of products and services, discuss why organisations use PPV, explain how to calculate it and review some examples.

What is the P/B ratio? The P/B ratio is a method for determining the worth of a stock. Its a mathematical ratio that compares the book value of a firm to its market capitalization, or the book value per share to the stock price per share.

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