Page 283 - PM Integrated Workbook 2018-19

Advanced variances

Illustrations and further practice

Now try TYUs 8 to 10.

6.4 Problems when calculating mix and yield variances

 Should only be used when the mix is controllable.

 It is often found that the mix and yield variances are interdependent.

 The standard may be obsolete.

 The analysis ignores any potential impact on quality of output.

 The calculations can be complicated.

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