In Preparing for an Audit of the Footwear Division of a Major

question 44

Multiple Choice

In preparing for an audit of the footwear division of a major retail organization, an internal auditor gathered the following information about the organization's stores: In addition to labor costs, the other costs associated with each store are leasing and maintenance expenses. Which of the following is a valid conclusion?

• A) Sales per store are directly related to the size of the store.
• B) Employees are less productive in larger stores.
• C) Gross margin is directly related to the size of the store.
• D) Cost of goods sold is directly related to the size of the store.

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