Material yield variance focuses on:
ARate differences
BPrice changes
CTotal quantity output difference
DMix ratio
Answer & Solution
Correct answer: C. Total quantity output difference
1. Yield variance measures the impact of producing more or less output than the standard yield for input used.
2. It is independent of mix and price effects.
3. The total quantity dimension is what drives the yield variance.
4. Hence the focus is on the total quantity output difference.
_Source: ICAI BoS Inter Paper 3, Ch 13 "Standard Costing", §13.5.1.4 ¶1_
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