Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › How to calculate the yield variance
- This topic has 3 replies, 2 voices, and was last updated 5 years ago by John Moffat.
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- March 4, 2019 at 12:58 pm #507402
Hello tutor
I would like like to know how to calculate the yield variance if there are multiple product
I commonly use a formula
SQSP
AQ(SM)SP – these two for finding yield variancesAQ(SM)SP — these two for mix
AQSPhowever, there is another formula
actual yield X
st yield at act output X(X) multiply with with st rate
I am confused with this, how to calculate the rate if there are two products, and question gets much harder especially when they says there is a wastage of 5% for example
Please help me tutor I need to understand this
March 4, 2019 at 5:34 pm #507502Have you not watched my free lectures on this, because I explain the ‘rules’ and the reasoning in my lectures?
You cannot simply learn formula to pass Paper PM. If mix and yield variances are asked then in Section C there will always be written parts to check that you really understand what is happening.
Mix and yield variances occur when there are multiple materials used – not when there are multiple products!
March 5, 2019 at 12:17 pm #507727well I know we have to interpret the answers
just wanted to know how they calculate the yield variances ?March 5, 2019 at 3:12 pm #507770If you watch my lectures then I explain how to calculate the yield variance (and you cannot expect me to type out all of my lectures here 🙂 )
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