Which of the Following Does Not Conform to FDA Standards

question 26

Multiple Choice

Which of the following does not conform to FDA standards for food labels:

• A) "fresh" means the food is raw or unprocessed
• B) "light" means at least one-tenth fewer calories per serving than the regular serving
• C) "low calorie" means the product has less than 40 calories per serving per 100 grams
• D) "low fat" means the product has 3 grams or less of fat per 100 gram serving
• E) all of the other choices are correct

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Definitions:

Direct Materials Budget

A detailed plan showing the amount of raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories.

Direct Labor Budget

A detailed plan that shows the direct labor-hours required to fulfill the production budget.

Production Budget

An estimate of the total amount of production, in units, that a company needs to meet its sales goals and inventory policies.

Master Budget

A number of separate but interdependent budgets that formally lay out the company’s sales, production, and financial goals and that culminates in a cash budget, budgeted income statement, and budgeted balance sheet.