This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Mix Variance = (AQ a M a )SP a Yield Variance = (M a SQ a )SP a AQ a = actual quantity used for input A; M A = actual total input quantity x budgeted mix a SQ A = standard quantity of input A for output achieved; SP a = standard price of input A z-score for statistical approach to variance investigation: z = (x u) / standard deviation where: x = actual observation in current period; u = average observations over a period of time...
View Full Document
- Fall '06