Direct Materials Yield Variance Definition
Direct Materials Yield Variance is the variance used to analyze effect of changes in material yield on materials cost.
Direct materials yield variance can be computed as:
(Actual units of material inputs used – Standard units of material inputs allowed for actual outputs) x (Standard average price per unit of material inputs)
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.