DEFINITION of 'Yield Variance'
The difference between actual output and standard output of a production or manufacturing process, based on standard inputs of materials and labor. The yield variance is valued at standard cost. Yield variance is generally unfavorable, i.e., actual output is less than standard or expected output, and only rarely favorable.
INVESTOPEDIA EXPLAINS 'Yield Variance'
For example, if 1,000 units of a product is the standard output based on 1,000 kilograms of materials in an 8hour production unit, and the actual output is 990 units, there is an unfavorable yield variance of 10 units. If the standard cost is $25 per unit, the unfavorable yield variance would be $250.
RELATED TERMS

Variance
The spread between numbers in a data set, measuring Variance ... 
Efficiency Variance
The difference between the theoretical amount of inputs required ... 
Budget Variance
A periodic measure used by governments, corporations or individuals ... 
Portfolio Variance
The measurement of how the actual returns of a group of securities ... 
Analysis Of Variance  ANOVA
A statistical analysis tool that separates the total variability ... 
Occupational Safety And Health ...
Law passed in 1970 to encourage safer workplace conditions in ...
Related Articles

Markets
Using Historical Volatility To Gauge Future Risk
Use these calculations to uncover the risk involved in your investments. 
Investing Basics
Regression Basics For Business Analysis
This tool is easy to use and can provide valuable information on financial analysis and forecasting. Find out how. 
Bonds & Fixed Income
Find The Highest Returns With The Sharpe Ratio
Learn how to follow the efficient frontier to increase your chances of successful investing. 
Options & Futures
An Introduction To Value at Risk (VAR)
Volatility is not the only way to measure risk. Learn about the "new science of risk management". 
Investing Basics
What are the main differences and similitudes between Money Flow & Real Flow?
Learn the meaning of the terms "money flow" and "real flow," and find out how they relate to each other as they are used in the circular flow of income. 
Investing Basics
What are the main differences and similarities between Money Flow and Real Flow?
Learn the meaning of the terms "money flow" and "real flow," and find out how they relate to each other as they are used in the circular flow of income. 
Fundamental Analysis
What is the most widely used gearing ratio?
Understand the most commonly used gearing, or leverage, ratio used to evaluate a company's financial condition, the debt to equity ratio. 
Fundamental Analysis
What is the first day of the fourth quarter?
Learn about different financial years used by various companies. Explore when the fourth quarter begins on October 1st and when it does not. 
Investing
What's a Merger?
Mergers are not the same as acquisitions. In an acquisition, one company buys and subsumes another company, leaving only the buyer in place. In most mergers, both companies merge to form an entirely ... 
Investing
More is Less: Diminishing Marginal Returns
In formal economic terms, the law of diminishing marginal returns states that as the number of new employees increases, the marginal product of an additional employee will at some point be less ...