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In Mix variance the material kgs would be same in total whether we have use more of one material and less of the other material would cause a variance because we are producing same total number of kgs.
[Mix variance is used in both material mix variance and sales mix variance]
In Yield variance the material kgs would not be same in total because the actual kgs produced might be more or less than standard/bugeted kgs which might be a result of more output in case we have more actual kgs produced and loss/wastage in case we have less actual kgs produced.
[Yield variance is used in both material yield variance and sales quantity variance]
Is that correct? I had misunderstanding so I asked you instead. I hope you can correct me here.
Thanks for the answer.
The mix and yield variances definitions that I asked you above would be used for material and sales?
We use the material mix and yield variance definition interchangeably for sales mix and quantity?
Material mix and Sales mix:
In material mix we are seeing how much material kilos are used in the production as a mixture of using different products whereas in sales mix we are seeing how much more of the profitable sales units are sold as a mixture of selling different products.Material yield and Sales quantity:
In material yield we are seeing how much material kilos are used to produce output whereas in sales quantity we are seeing how much output is produced as compared to budgeted production.
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