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material yield variance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › material yield variance

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • June 11, 2021 at 5:31 am #624589
    xyzc
    Participant
    • Topics: 362
    • Replies: 130
    • ☆☆☆

    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?

    June 11, 2021 at 8:59 am #624626
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51573
    • ☆☆☆☆☆

    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?

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