Consequential Damages May Not Be Recovered, Even If They Were

question 7

True/False

Consequential damages may not be recovered, even if they were within the contemplation of the parties at the time of contracting.

---

Definitions:

Standard Factory Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a certain base such as labor hours or machine hours.

Direct Labor Hour

A measure of the amount of time an employee spends producing goods or services, directly associated with the product's cost.

Normal Capacity

Represents the average production level expected over a specific period under normal operating conditions.

Fiscal Year

The annual accounting period adopted by a business.