Purchase Price variance
SummaryPurchase Price variance
When there is a purchase price variance, customer needs to defer this expense/profit.
Say for an example, Standard cost price - 10 USD for an item, Purchase price - 12 USD. There is a loss of 2 USD which will be recognized in the Profit and loss account in the period which it is incurred, Can this be deferred to the period which the goods are manufactured.
Can someone advise on the PPV and its treatment.