Cost of debt weighted average cost of capital
opportunity cost
optimal capital structure
the benefit that would have been
gained but given up, to acquire
something else
the rate that a company is expected
to pay on average to all its debt
and equity holders
the cost that is calculated on
interest after tax
the best debt to equity ratio that
maximizes the profit of the business

Turrubiates corporation makes a product that uses a material with the following standards standard quantity 8.0 liters per unit standard price $2.50 per liter standard cost $20.00 per unit the company budgeted for production of 3,800 units in april, but actual production was 3,900 units. the company used 32,000 liters of direct material to produce this output. the company purchased 20,100 liters of the direct material at $2.6 per liter. the direct materials purchases variance is computed when the materials are purchased. the materials quantity variance for april is: