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How to calculate the yield variance

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 6 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • March 4, 2019 at 12:58 pm #507402
    proticz
    Member
    • Topics: 27
    • Replies: 72
    • ☆☆

    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 variances

    AQ(SM)SP — these two for mix
    AQSP

    however, 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 #507502
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    Have 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 #507727
    proticz
    Member
    • Topics: 27
    • Replies: 72
    • ☆☆

    well 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 #507770
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    If 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 🙂 )

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘How to calculate the yield variance’ is closed to new replies.

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