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Sir if in examination a question comes to define mix and yield variance, so does writing the below is sufficient
a) Mix variance shows the effect of changing the proportions of the mix of materials input into the process
b) Yield variance shows the difference between the actual and expected output or yield from the process
Sir secondly yield variance is the difference between the actual and expected output OR it is the difference between the actual and expected input?
(a) and (b) are both correct.
Yield variance is the difference between the actual and expected output costed at the standard cost per unit of output, or the difference between the actual and expected input costed at the standard cost per unit of input. They would both give the same answer.
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