ACCA Applied Knowledge · Management Accounting · Sources of data
A cost accountant at Dalton Ltd needs the average industry wage rate for machine operators. Which of the following is the most appropriate use of secondary data for this purpose?
Using a government labour statistics publication is the secondary data approach. It was collected by another body and gives industry averages cheaply, whereas interviews, observation and pilot studies all create new primary data.
- AInterviewing Dalton Ltd's own machine operators about their pay
- BUsing a government labour statistics publication showing average wages by occupationCorrect
- CObserving the operators at work for a week with a stopwatch
- DRunning a pilot study with a sample of new recruits
Explanation
A government statistics publication was compiled by another body for general use, so it is secondary data and gives industry-wide averages cheaply. The other options all involve collecting new data first-hand, which is primary data.
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