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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Definitions:

Cellulose

A complex carbohydrate or polysaccharide consisting of glucose units, forming the primary structural component of plant cell walls.

Plant Cell Walls

Rigid outer layers surrounding plant cells, made primarily of cellulose, providing structure, support, and protection.

Glycogen

A form of stored glucose found in the liver and muscles; it's broken down into glucose when energy is needed.

Polysaccharide

A complex carbohydrate composed of long chains of monosaccharide units bonded together, serving as energy storage or structural components in organisms.