Calculating MYV is very important in the processing industries, where the output from one process becomes the input of another. For such companies analyzing yield variance assists in maintaining control over the usage. All businesses would like to create an optimum output out of usage per unit of...
Now, if the price of X and Y change, or the selling price of Z changes, or if the production uses more materials than the optimum mix, this will result in the variance. Now, assume that the company produces 1,900 ltr. of Z using 900 ltr. of X and 1,100 ltr. of Y. The cost...