Which of the Following Statements Is True Regarding Energy Drinks

question 209

Multiple Choice

Which of the following statements is True regarding energy drinks?

• A) The Food and Drug Administration (FDA) heavily regulates energy drinks.
• B) All energy drinks must contain vitamins, food additives, and stimulants, including caffeine.
• C) Energy drinks are classified as food by the Food and Drug Administration (FDA).
• D) The Food and Drug Administration (FDA) ensures that claims made by drink manufacturers are verified.
• E) Energy drinks claim to increase energy levels, mental awareness, and reduce muscle fatigue.

---

Definitions:

Fixed Manufacturing Overhead

Costs that do not vary with the level of production output, such as rent and salaries of managerial staff.

Fixed Manufacturing Overhead

Indirect production costs that remain constant regardless of the level of production.

Volume Variance

A financial metric that measures the difference between the actual volume of production and the expected (or budgeted) volume, which can affect costs.

Denominator Level

The quantity or level used in cost accounting as a divisor to allocate fixed costs among units of output, helping in understanding per unit costs.