Purchase Price Variance, Cost Reduction & Cost Avoidance
This lesson is part of the course
In this lesson
You calculate the purchase price variance (PPV) against standard cost and split this year's negotiation results into hard cost reduction and cost avoidance.
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Lessons in this course
- The Spend Cube: Category × Supplier with SUMIFS Locked
- Supplier Pareto & Tail Spend Locked
- Purchase Price Variance, Cost Reduction & Cost Avoidance Locked
- Supplier Scorecard: Normalised KPIs, Weights & Rank Locked
- Should-Cost Model: What the Part Ought to Cost Locked
- Total Cost of Ownership: Beyond the Unit Price Locked
- Contract Compliance & Maverick Spend Locked
- Tender Evaluation: Price Normalisation & Weighted Award Locked