An analyst in your team is a little confused about Materials Yield Variance. He is unable to understand how the same is different from Materials Mix Variance. As a financial controller, your CFO has advised you to demonstrate the same to him with a numerical example. How would you explain the same to him? When exactly does a yield variance arise? When does a mix variance arise? What advantage would a firm have by measuring the mix and yield variances?

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Material yield difference and Material blend change are two diverse fluctuation examination instruments to discover the fluctuation between standard p... View the full answer