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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › mix and yield
anyone can suggest me reasons why we have an adverse mix and yield variances
and what impact on both variance each other
An adverse mix variance will occur because more of the more expensive material(s) have been bought, and less of the cheaper material(s).
An adverse yield variance will occur if have wasted more material than we would have expected to.
A favourable mix variance could lead to an adverse yield variance – this is because a favourable mix variance would mean we were buying cheaper materials. Using cheaper materials could result in more waste, so an adverse field variance.
Thanks John.
You are welcome 🙂