Yield Variance Definition for Financial Students

The yield variance definition refers to the calculation used to assess whether a production process generated more or less output than expected from a given input. This concept is widely used in manufacturing and cost accounting to measure efficiency. Understanding the yield variance definition helps managers detect production issues early and take corrective action. When actual output differs from standard output, the variance reveals either savings or losses. Businesses use the yield variance definition to ensure materials and labor are utilized properly. It is a key performance indicator for improving operational control and reducing unnecessary expenses.