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Hie John,
In chapter 14 example 3 , you calculated yield variances by comparing the actual amount of material used with the amount which would have been used if the budget stood. In the practice and revision kit BPP question 70 they calculated yield variances using the same quantities of actual materials used. Something here on OT we only did for Mix and price variances. I just wanna make sure whether this is one of the variations in answers you were talking about during the lectures . Caused by old methods and methods of the current examiner .
Thanks John.
When I refer to the current examiner and the previous examiners having different approaches, I was referring only to planning and operational variances – not to mix and yield variances.
There is more than one way of showing the calculation of the yield variance, but they both give the same answer. I show it what I find the easiest way, but it doesn’t matter how you calculate it in the exam – again however there is only one answer whichever way you do it.
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