How can I measure material cost variance (MKV) or material price variance (MPV)?

Material cost variance (MCV) or material price variance (MPV) is an essential key procurement savings indicator. It identifies the change of material costs or material price with respect to a reference value, e.g. compared to the previous year.

The result should be subsequently compared to the price development on the market as well as the currency effects contained in the change of price so as to avoid erroneous interpretations. The effects measured by the MPV affect the profit and loss statement and therefore demonstrate the added value of the procurement as well.

Spend Control - Advanced Analytics, Transparency & KPIs

Spend Control 2022

Spend Control is a complete Procurement Controlling and Spend Management solution. It provides all functions, KPIs and measures needed for professional Spend Analysis.

With its standardized ERP interfaces you can connect the spend cube of Spend Control within a short time frame to any ERP system (e.g. SAP, Navision, Oracle etc.).

Request a Spend Control Demo more about Spend Control

Search Glossary

Orpheus Glossary

Here you will find important terms related to spend management explained in a clear way. Small knowledge base for quick information or in full for your further education. This controlling glossary is constantly being expanded and improved.

Orpheus Blog

Read blog articles about spend management, initiative management and data management in procurement, or other articles from our experts.

Calculating and Analyzing Material Price Variance (MPV)
Material price variance – sometimes also referred to as material cost variance (MCV) – is an essential key indicator for spend managers. ...


For more information, see the following article:

Connect with our experts