120VAC with a 3% drop is easily within the US utility standard of +-10% for appliances.
For 12V just using a % can be misleading. Let's take an example:
40A charger with 10' 8ga wire (one way) charging at 14.8V bulk rating of a flooded battery. That results in a 0.5V wire drop for 14.3V at the battery and a 3.4% voltage drop.
Or a 12.1V battery voltage with a 40A draw with 10' of 8ga wire. Now the appliance has 11.6V with a 4.15% voltage drop.
All is good on shore power with many hours to charge and a charger to maintain the battery with house loads. But if running the gen longer to charge or using solar then knowing the voltage/power losses should be considered along with the voltage to house loads.
Your mileage may vary. :):B