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More Variance (Materials)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › More Variance (Materials)

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • March 17, 2021 at 4:32 am #614566
    Sourav9271
    • Topics: 157
    • Replies: 103
    • ☆☆☆

    Sir,
    I found this question in Kaplan (177 Section A OTQ)

    Question:
    Would a favourable materials mix variance usually result in adverse yield variance? Ans:True

    Sir how can it be true? what if the input=yield and mix favourable was simply because we used more proportion of cheaper..

    March 17, 2021 at 7:59 am #614575
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49603
    • ☆☆☆☆☆

    I do not have the Kaplan book (only the BPP Revision Kit) and so I cannot check the question.

    However, unless there was more information (such as, for example, this was in Section B and there was more information in the stem of the question) or unless the wording was not exactly the same as you have typed, then answer is not true. If the mix variance is favourable, then the yield variance might be favourable or might be adverse.

    March 17, 2021 at 3:19 pm #614606
    Sourav9271
    • Topics: 157
    • Replies: 103
    • ☆☆☆

    If the link doesn’t work can you pls provide me with open Tuition email.
    I’ll send question there.

    March 17, 2021 at 3:59 pm #614615
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49603
    • ☆☆☆☆☆

    I have deleted the link in your post because it is illegal for us to have links to copyright material (and is against ACCA regulations). We are not able to provide help by email – only within these forums – given that we provide this service free of charge.

    However, having seen the question, my reply remains the same as before.
    Statement 1 of the question is correct but statement 2 is not correct (it obviously can be the case but is not always going to be the case).

    I assume that your Exam Kit gives you access to the Kaplan website – have you checked to see if they have an errata sheet? Usually they will have one correcting any errors in their books.

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