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In accounting, purchase price variance (PPV) accounts for the potential change in value of materials from when theyre purchased to when theyre recorded. Understanding PPV can help you manage a companys accounting process。

Related: What Is PPV in Accounting? How to Record It in Your Books Auditing This branch of accounting is either internal or external, depending on the entity performing it.

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 the book value per share to the stock price per share.

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