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Question: Indicate by selecting the relevant boxes whether each of the following statements would result in adverse material yield variance.
Not fully removing the mix out of the machine, leaving some behind.
An unexpected increase in the cost of flour introduced by the supplier.
Why do the above two statements result in adverse material yield variance?
If the leave some of the mix in the machine then they will not be producing as many units of the product as they should be producing.
The cost of flour is not relevant for the yield variance.
Have you actually watched my free lectures on mix and yield variances?