What is 'Yield Variance'
Yield variance is 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.
Next Up
BREAKING DOWN '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

Unfavorable Variance
An accounting term that describes instances where actual costs ... 
Budget Variance
A periodic measure used by governments, corporations or individuals ... 
MeanVariance Analysis
The process of weighing risk against expected return. Mean variance ... 
Variance
The spread between numbers in a data set, measuring Variance ... 
Efficiency Variance
The difference between the theoretical amount of inputs required ... 
Variable Overhead Efficiency Variance
The difference between actual variable overhead based on the ...
Related Articles

Fundamental Analysis
Explaining Variance
Variance is a measurement of the spread between numbers in a data set. 
Professionals
Expected Return, Variance And Standard Deviation Of A Portfolio
Learn these valuable ways of analyzing your portfolio. 
Investing Basics
Calculating Portfolio Variance
Portfolio variance is a measure of a portfolioâ€™s volatility, and is a function of two variables. 
Fundamental Analysis
Exploring The Exponentially Weighted Moving Average
Learn how to calculate a metric that improves on simple variance. 
Professionals
Standard Deviation And Variance
CFA Level 1  Statistical Concepts And Market Returns  Standard Deviation And Variance 
Professionals
Modifying Output
Modifying Output. Learn the difference between the economic short and long runs. 
Budgeting
How Budgeting Works For Companies
Learn how to break down and understand a corporate budget. 
Bonds & Fixed Income
Yield Curve
Learn more about how this curve is used to predict changes in economic output and growth. 
Economics
What is Productivity?
Productivity is an economic term describing the relationship between outputs as compared to inputs needed to produce those outputs. 
Professionals
Advanced Probability Concepts
CFA Level 1  Advanced Probability Concepts
RELATED FAQS

How is an unfavorable variance discovered?
Learn how unfavorable variance is discovered through defining budget numbers, such as standard rates for labor and materials, ... Read Answer >> 
What is price variance in cost accounting?
Understand what price variance is in relation to cost accounting. Learn the most common way price variance arises and how ... Read Answer >> 
What does an unfavorable variance indicate to management?
Learn what an unfavorable variance indicates to management, such as problems with meeting expense and revenue targets or ... Read Answer >> 
What is the difference between standard deviation and variance?
Understand the difference between standard deviation and variance; learn how each is calculated and how these concepts are ... Read Answer >> 
Is variance good or bad for stock investors?
Learn how high variance stocks are good for some investors and how diversified portfolios can reduce variance without compromising ... Read Answer >> 
What is the difference between variance and standard deviation?
Explore the differences between standard deviation and variance. Learn more about how statisticians use these two concepts. Read Answer >>