Hi John,
Could you please help me understand what is the difference between
- Mix Variance and
- Yield Variance
Taking Materials as an example.
Would I be correct in saying - Mix looks at the cost of materials. If a (F) variance, this means we have used more of the cheaper material in the mix.
Yield looks at the quantities (input) of raw materials used in production (output). If a (F) variance, this means we have used less raw materials in the product than we expected for the level of output produced.
Thanks
Maurice
Ask the Tutor ACCA PM
Mix and Yield Variance
What you have written is correct.
(I do suggest that you watch the free lecture on mix and yield variances)
Sign in to reply to this topic.
