What Is a Trade Secret and What Must a Company

question 42

Essay

What is a trade secret and what must a company do to have enforceable rights to protect a trade secret?

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Definitions:

Machine Hours

A measure of production output or activity based on the cumulative hours that machines are operational.

Factory Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and management salaries.

Machine Hours

A measure of the actual time a machine is operated, used in calculating manufacturing costs and setting factory overhead rates.

Overapplied Amount

This is an accounting term referring to a situation where the actual manufacturing overhead cost is less than the overhead cost applied to production, resulting in a surplus.