Mix and Yield Variance

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