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I would like to ask actually what is the real meaning of material yield variance.is it related to waste or its merely a yield..example if the actual results is more than the budgeted is ut a waste or what.
You can look at it two ways (both meaning the same).
Either think of it as to whether they waste more than they budgeted on wasting, or whether they end up producing less than they budgeted on producing (in both cases for the total amount they input).
Suppose they input 100 kg and should produce 90kg (i.e. should waste 10kg).
If they actually input 100kg but only produce 85kg then they have actually wasted 15kg.The yield (output) is 5 kg less than it should be (an adverse variance).
Or, the waste is 5kg more than it should be (again, an adverse variance).
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