08/28/2026
Your BOM says 1,000 units. Production made 900. Where did the other 100 go?
Your BOM or recipe says the batch should produce 1,000 units.
You consumed the expected materials, but production only yielded 900 finished units. Those materials didn’t disappear financially. They’re now spread across fewer sellable units, which means your actual unit cost just went up.
This is especially important for food, chemical, cosmetics and other batch manufacturers where variable yield is simply part of production.
We rebuilt our article on variable yield to look at the problem from both sides:
• expected vs. actual production
• the impact on unit cost and margin
• WIP and material consumption
• manufacturing variances
• why QuickBooks or Sage alone may not show what actually happened on the shop floor
MISys fills that manufacturing layer while QuickBooks or Sage continues doing the accounting.
Variable Yield in Manufacturing: When the Batch Doesn’t Produce What You Expected
https://misysinc.com/accounting-for-variable-yields-in-manufacturing/
If you work in batch manufacturing, I’d also be interested in how much yield variation you consider “normal” before you start investigating the process.