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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:TrueSir how can it be true? what if the input=yield and mix favourable was simply because we used more proportion of cheaper..
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.
If the link doesn’t work can you pls provide me with open Tuition email.
I’ll send question there.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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