ACCA Applied Knowledge · Management Accounting · Sources of data
A company wants to find out why customers in a particular region have stopped buying its product. It needs original, first-hand data collected specifically for this purpose. Which source of data is this?
This is primary data, because it is original, first-hand information gathered specifically for the question being investigated. Secondary data already exists and was collected for another purpose, such as government statistics or ledgers, so it would not be tailored to why customers stopped buying.
- APrimary dataCorrect
- BSecondary data
- CPublished government statistics
- DData from an internal sales ledger kept for another purpose
Explanation
Primary data is collected first-hand for a specific purpose, for example through surveys or interviews. Secondary data already exists and was collected for another purpose, such as government statistics or the sales ledger.
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