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The cost effect of using more or less material than the standard allows.
Yield variance compares the material actually consumed with what the bill of materials said a given output should require, and values the difference. An unfavourable variance means more input was used per unit produced.
It separates a materials problem from a price problem. Paying more for the same quantity is a price variance; using more of it is a yield variance, and the two have completely different fixes.
Yield variance = (Actual input − Standard input for actual output) × Standard cost
Read alongside purchase price variance so the two effects are not confused.
Manufacturing runs on this vocabulary every day in AWRA OpsHub — 14 of our 257 glossary terms describe things the platform actually does.