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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 twhat is ppvhe book value per share to the stock price per share.

Heres the formula to calculate purchase price variance: Purchase price vwhat is ppvariance = (Actual quantity x Standard price) − Actual quantity x Actual price Related: What Is PPV in Accounting? (How to Record It in Your Books)

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.

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