The Term "Safeguard" Refers to the Relinquishment of an Obligation

question 23

True/False

The term "safeguard" refers to the relinquishment of an obligation owed by another.

---

Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, used as a basis for applying labor costs to products.

Manufacturing Overhead

All indirect costs associated with manufacturing a product, such as the expenses for equipment maintenance and factory staff salaries, not directly tied to production volume.

Selling Price

The selling price of goods or services to the consumer.

Variable Manufacturing Overhead

Variable manufacturing overhead comprises costs that fluctuate with production volume, such as utilities and materials used in the production process.