• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2025 exams.
Get your discount code >>

Material yield variance definition

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Material yield variance definition

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • July 17, 2020 at 9:56 am #577061
    espie
    Member
    • Topics: 7
    • Replies: 11
    • ☆

    Hi John,
    Quoting Kaplan textbook “A yield variance measures the efficiency of turning the inputs into outputs. If the yield variance is adverse, it suggests that actual output is lower than the expected output.”
    Having gone through your lecture on mix and yield variance where you discuss example 3 (of chapter 14), the yield variance is $533 Adverse and the actual output (15,200) is higher than expected output (15,000). Textbook definition is not making sense to me or am I missing something here?

    Many thanks,
    SP

    July 17, 2020 at 4:44 pm #577184
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54758
    • ☆☆☆☆☆

    You are missing something 🙂

    As Kaplan state, if the yield variance is adverse then the actual output is lower than the expected output.

    The expected output is not the budgeted output. It is the output that would be expected for the amount that was inputted.

    In my example that you refer to, they inputted a total of 15,200 kg. Since the standard cost card has input of 3kg for one unit, they would therefore expect to be able to produce 15,200/3 = 5,067 units. They actually produced only 5,000 units and therefore there is an adverse yield variance.

    July 17, 2020 at 10:52 pm #577208
    espie
    Member
    • Topics: 7
    • Replies: 11
    • ☆

    Many thanks John! Very clear now.

    July 18, 2020 at 9:53 am #577274
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54758
    • ☆☆☆☆☆

    You. are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Sid24012003 on Cost Classification and Behaviour part 1 – ACCA Management Accounting (MA)/you
  • babysnow88 on Equity settled share based payments – service – ACCA (SBR) lectures
  • smuuo on FM Chapter 8 Questions – Relevant cash flows for DCF
  • hikati on ACCA BT Chapter 16 – Performance and appraisal interviews – Questions
  • hikati on ACCA BT Chapter 15 – How an individual can develop – Questions

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in