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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Mix and Yield variances
I have four quick questions to ask you relating to mix & yield variances. I hope you won’t mind 🙂
(1)
Standard mix is calculated where we need to take the proportion of the Kg used on one product divided by the total kgs used on all products such as:
Standard Mix = (Individual Std Kg / Total Std Kgs)
(2)
Actual Quantity Standard Mix (AQSM) is calculated such as:
AQSM = (Standard Mix x Total Actual Kgs)
(3)
Standard Quantity Standard Mix (SQSM) is calculated such as:
SQSM = (Standard Mix x Total Std Kgs)
(4)
Why do we use material Kgs instead of the material units produced in the calculations of mix & yield variances?
Am I correct?
(1) Correct
(2) Correct
(3) Correct
(4) Because it is changes in the total materials used and in the mix of the materials that are causing there to be variances in the first place.
Have you watched my free lectures on mix and yield variances?