What Does It Mean If a Package of Flour Tortillas

question 15

Multiple Choice

What does it mean if a package of flour tortillas is labeled "95% fat free"?​

• A)​95% of the ingredients are low fat
• B)the product contains approximately 95% fat on a weight basis
• C)5% of the ingredients are fat free
• D)the product contains approximately 5% fat on a weight basis
• E)​the product contains fewer than 10 grams of fat

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Definitions:

Gross Cost

The total cost incurred before any deductions or allowances.

Operating Assets

Assets used by a company in its day-to-day operations to generate revenue, excluding investment and non-operational assets.

Return On Investment (ROI)

Net operating income divided by average operating assets. It also equals margin multiplied by turnover.

Depreciation

The systematic allocation of the cost of an asset over its useful life.