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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.

Heres the formula to calculate purchase price variance: Purchase price variance = (Actual quantity x Standard price) − Actual quantity x Actual price Related: What Is PPV in Accounting? (How to Record It inwhat is ppv Your Books)

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。

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