Assessment material REVIEW QUESTIONS 1. Distinguish between total direct materials yield and mix variances. Direct materials yield and mix variances are particularly useful when materials are substitutable.’ Do you agree Explain. Name three sources of the standards used in the total direct materials yield and mix variances. Changes in the mix of direct materials used from the budgeted mix always hurt yield.’ Do you agree Explain. How might managers use information about direct-labour yield and mix variances in improving the performance of a business. Give an example of an input other than direct materials and direct labour where calculating yield and mix variances might be useful. Explain your reasoning briefly. The manager of a highly automated plant that assembles desktop computers commented, Yield and mix variance information is irrelevant to my cost management decisions Give two possible reasons for the manager’s statement. Explain why a favorable sales-quantity variance occurs. Distinguish between a market-size variance and a market-share variance. Why might some companies not calculate market-size and market-share variances?
