A Bakery Chain Has a Statistical Model That Can Be

question 409

Multiple Choice

A bakery chain has a statistical model that can be used to predict daily sales at individual stores based on a direct relationship to the cost of ingredients used and an inverse relationship to rainy days. What conditions would an internal auditor look for as an indicator of employee theft of food from a specific store?

• A) On a rainy day, total sales are greater than expected when compared to the cost of ingredients used.
• B) On a sunny day, total sales are less than expected when compared to the cost of ingredients used.
• C) Both total sales and cost of ingredients used are greater than expected.
• D) Both total sales and cost of ingredients used are less than expected.

---

Definitions:

English

A West Germanic language originating in England, now globally dominant and widely spoken internationally.

Deerskins

The skins of deer, traded as commodities between Native Americans and European settlers, often used for clothing, bookbinding, and other purposes.

Indian Slaves

Refers to the historical practice of enslavement of indigenous peoples in the Americas, often involving forced labor and exploitation by European colonizers.

Queen Anne

The monarch of Great Britain and Ireland from 1702 to 1714, whose reign saw the union of England and Scotland.