Significant figures, or "sigfigs," are crucial in determining the precision of numerical results in calculations. The product of two numbers will have the same number of significant figures as the least precise number involved. In the example of 1200 multiplied by 23.4, 1200 has 2 sigfigs and 23.4 has 3 sigfigs, resulting in a product expressed with 2 sigfigs: 28000 or 2.8 x 10^4. Key rules include that all non-zero digits are significant, terminal zeros to the right of a decimal point are significant, and for multiplication and division, the final answer should match the least number of sigfigs from the original numbers. For addition and subtraction, the answer should reflect the least number of decimal places. While some find sigfigs confusing initially, the concept is straightforward, and double-checking calculations can help avoid common mistakes, especially under pressure.