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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: Definition, Formula and Examples Why is PPV important? Most mappv inventory meaningnufacturers agree that raw materials take up most of their running costs,。

Purchasing departments measure PPV when they purchase raw materials. If there is a significant price variance, ippv inventory meaningt needs to be reclassified into the inventory of raw materials, inventory of work-in-progress, cost of products, and。

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