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Siddarth

macrumors newbie
Original poster
I've been using Yosemite since the first DP was released. Never had this problem before.

Things I have tried till now:
  1. Resetting PRAM
  2. Verifying and Repairing Permissions
  3. Killing coreaudiod using the terminal

Repairing permissions fixed the problem once for me, but the volume icon greyed out again a few hours later.
 
What I did when this happened was to insert a headset cable into the computers headset jake, than removed it and it worked. Unknown if this will help you.
 
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