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Sir, I had a doubt in such type of questions.
Here they have given us an input loss of 1878 which we have ignored, but in some Sec A questions that I have come across the it was given for eg ‘standard loss of 10%inputs is expected to occur, the actual output is 9100’, which we accounted for while calculating material yield.
Sir, what I am unable to understand is why are we ignoring the input loss and some we haven’t.
Thank you in advance!
The answer has not ignored the normal loss.
In calculating the yield variance they have compared the actual yield of 60,000 cakes with the standard yield for the actual input (they actually input 23,478 kg and the standard yield is calculated using 0.4kg per cake, which takes into account the normal loss.
Have you watched my free lectures on mix and yield variances?
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