An unfavorable PPV is the situation where the true purchase price is higher than the price that is standard or is expected. The causes can be in rise of supplier prices, inadequate negotiation, inflation, dispatch or emergency purchases, fluctuation of exchange rates, or sudden tariffs. At other times, commodity product grade alterations or quality enhancement augment expenses too. It can as well be an indicator of internal problems, such as poor budgeting or failure to plan procurement. Negative PPV shall also be effectively interpreted to understand the main figure and harmonize contracts with the supplier, budgets, or buying habits.
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