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Exam IIA-CIA-Part1 topic 3 question 47 discussion

Actual exam question from IIA's IIA-CIA-Part1
Question #: 47
Topic #: 3
[All IIA-CIA-Part1 Questions]

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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Suggested Answer: A 🗳️
by mkanchwala at Sept. 2, 2021, 10 a.m.

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Komboh
10 months, 2 weeks ago
840 - 220 760- 1850 736- 1800 630 - 1550
upvoted 1 times
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mkanchwala
10 months, 2 weeks ago
Can someone elaborate with the calculation?
upvoted 1 times
John1237
1 month, 3 weeks ago
The larger the average square feet per store, the higher the average sales per store (but not proportionally).
upvoted 1 times
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