A Bakery Chain Has a Statistical Model That Can Be

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.