Nice Limited provides the following information. Tonnes Standard input 100 Standard loss 10% 10 Standard output 90 Standard cost per tonne of output Rs.2,000. Tonnes Actual input 2,000 Actual output 1,820 You are requested to compute yield variance.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Nice Limited provides the following information.
Tonnes
Standard input 100
Standard loss 10% 10
Standard output 90
Tonnes
Actual input 2,000
Actual output 1,820
You are requested to compute yield variance.
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