Yield Variance

Yield Variance refers to the difference between the expected or budgeted yield and the actual yield achieved in an investment or business operation. It measures the deviation or gap between the anticipated return and the realized return. Yield Variance is calculated by subtracting the expected yield from the actual yield and can be expressed as either a positive or negative value. A positive yield variance indicates that the actual yield exceeded the expected yield, resulting in a favorable outcome. Conversely, a negative yield variance signifies that the actual yield fell short of the expected yield, indicating an unfavorable result.