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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Yield variance
Errors in the mix causing sub-standard loaves and rejections by the quality inspector.
Does the above statement result in adverse material yield variance, and if it does, then why is it so?
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Yes it would result in an adverse yield variance. If more loaves are being rejected then the number of ‘good’ loaves produced will be less than they should be.