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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › yield variance
Hi John!
What’s the difference the usage variance and the yield variance of a product?
In your lectures concerning yield variance in example 3, you’ve said:
-“In total we used 15,200 kg. Was it more or less than we should have used?
That’s the same logic that we would used if we were to calculate the usage variance alone( forgetting mix and yield for a moment)
Please clarify this!
It is the same logic, but the usage variance looks at what was actually used for each material – not just the total.
The yield variance looks at the total (assuming standard mix) – it is the mix variance that looks at the change in the mix.