Hello Sir.
As mentioned in technical article and indeed understandable, that there is usually an interdependence between the Material Mix Variance and Material Yield Variance.
Is there also any interdependence between the Sales Mix and Sales Quantity Variance as well?
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Sales Mix and Quantity Variance.
3y ago#1There could be, but it is not so likely as with materials mix and yield.
Thankyou Sir,
Sir another thing that I'm confused in and wanted to ask you is that, as changes in the selling price influence the demand for the product and so the Sales Quantity Variance.
Will it also impact the Sales Mix Variance? For instance, in case the organisation sell 2 products which are kind of interchangeable. In case Organisation reduces the price of one of its product, the demand shoots up for that product while the demand for the other product falls. Forcing organisation to sell more units of first product and less units of the second product.
3y ago#3It could impact the mix variance just as you write :-)
Thankyou Sir, really appreciate that you are listening and responding to all my doubts no matter how silly they are.
3y ago#5You are welcome.
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