An unfavorable materials quantity variance indicates that the actual usage of materials exceeds the standard material allowed for output.
<h3>What do you mean by material quantity variance?</h3>
The material quantity variance refers to the difference between the standard amount and the actual amount of materials used in the production process.
The material quantity variance yield unusual results as it is based on a standard unit quantity that is not even close to the actual usage.
Therefore, an unfavorable materials quantity variance indicates that the actual usage of materials exceeds the standard material allowed for output.
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<span>In a guaranty situation, the guaranty contract is between the person who agrees to pay the debt if the primary debtor does not and the original creditor.
The guaranty contract outlines the role of the </span>people in the agreement. It shows the lender to borrow agreement and obligation. This agreement serves as a document to make sure the lender has proof in value to get something in return from lending the money.
16% is the answer.
<u>Explanation:</u>
<u>The following is used in order to calculate the cost of the retained earnings.
</u>
The Calculation of cost of retained earnings by using bond yield plus the risk premium method
= Long term bond yield + the risk premium
The Long term bond yield = 12 percent
The risk premium = 4 percent
Cost of retained earnings = 12 percent plus 4 percent = 16 %
Therefore, the correct option will be with the 16 percent
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