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Variance analysis can help companies manage projects, productions or operational expenses by monitoring what is ppvplanned versus actual costs. Creating an effective analysis can help businesses maintain and improve operations.

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.

Explore What is PPV?, learn what causes price variances, discover why organisations use PPV, find out how to calculate it and see some example calculations.

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