Assertion (A) Material yield variance is that portion of direct material usage variance which is due to the difference between standard yield and actual yield obtained. Reason (R) Yield variance arises due to wastage of
CS Executive · Cost and Management Accounting · PYQS · December 2016
Assertion (A) Material yield variance is that portion of direct material usage variance which is due to the difference between standard yield and actual yield obtained. Reason (R) Yield variance arises due to wastage of material during the process and standard material yield is determined by subtracting the standard wastage from standard quantity of material. Select the correct answer from the options given below —
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Cost Accounting
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