A Contract in Which a Party Assumes a Secondary Obligation

question 62

True/False

A contract in which a party assumes a secondary obligation normally must be in writing to be enforceable.​

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Definitions:

Direct Materials

The raw materials that are directly traceable to the production of goods.

Manufacturing Process

The sequence of operations involved in transforming raw materials into finished products.

Tangible Components

These are the physical assets of a business or product which can be seen, touched, and measured.

Manufacturing Cost

The total expense incurred in the process of producing a product, including raw materials, labor, and overhead costs.