Here's why:
* Material usage ratio: This ratio measures the amount of raw materials used to produce a certain amount of finished product. It's often expressed as a percentage, showing how much of the raw materials are actually converted into the final product.
* Material yield ratio: This ratio is similar to the material usage ratio, but it focuses on the amount of usable product obtained from the raw materials. It's also often expressed as a percentage and represents the efficiency of the production process in terms of converting raw materials into usable output.
Both ratios are important for businesses to track because they help identify areas for improvement in the production process. A high material usage ratio or material yield ratio indicates that the company is efficiently using its raw materials and minimizing waste.
