Explain what production mix and production yield variances measure. How do these variances relate to efficiency variances?

What will be an ideal response?


The production mix and yield variances break an efficiency variance down into the impact of a change in material or labor mix and yield. The mix variance arises from changes in the relative proportions of inputs. The yield variance is the difference between expected output from a given level of inputs (holding the mix constant) and the actual outputs obtained.

Business

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