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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.

In this articlwhat is ppve, 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.

Related: What Is PPV in Accounting? (How to Record It in Your Books) How does budget variance analysis help with forecasting? Forecasting refers to the process of using data to predict financial performance. You can use budget to actual variance analysis to create more accurate predictions.

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