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Yield variance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Yield variance

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • June 11, 2021 at 5:23 am #624588
    xyzc
    Participant
    • Topics: 413
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    • ☆☆☆☆

    Errors in the mix causing sub-standard loaves and rejections by the quality inspector.

    Does the above statement result in adverse material yield variance, and if it does, then why is it so?

    June 11, 2021 at 8:57 am #624624
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54696
    • ☆☆☆☆☆

    Why are you attempting questions for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved Publishers – they contain answers and explanations!

    Yes it would result in an adverse yield variance. If more loaves are being rejected then the number of ‘good’ loaves produced will be less than they should be.

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