- This topic has 3 replies, 2 voices, and was last updated 4 years ago by
.
- Posts
Good afternoon sir, may I please ask you a question from BPP exercise book question186. The question asked for Favourable material yield, but from the lecture when standard input is less than the actual input at standard price, should it be Adverse instead Favourable?
Many thanks for helping through!
It is favourable,
The reason is that for the yield variance we compare the actual yield from the actual input (20,800) with the standard yield from the actual input (19,552).
The actual yield is more than it should have been and therefore the variance is favourable.
Have you watched my free lectures on this? The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
Thank you sir and yes I did go through the online lecture note. I think I made the mistake by mixing example 6 from chapter 14 with this question. So we can either compare the standard input with the actual yield or compare the actual and budget yield straight away?
- You must be logged in to reply to this topic.