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ACCA Applied Knowledge · Management Accounting · Sources of data

A management accountant is deciding whether to rely on data from a trade association survey. Which factor is the MOST relevant to assessing the reliability of this external data?

The survey's sample size, collection method and date matter most. These determine whether the data is representative, unbiased and current. Presentation style, download popularity or the size of the association's membership do not show whether the data is accurate or reliable for decision making.

  1. AThe colour and layout of the published report
  2. BThe number of times the survey has been downloaded
  3. CThe survey's sample size, method and date of collectionCorrect
  4. DThe length of the association's membership list

Explanation

Reliability of external data depends on how it was collected: sample size, method, bias and how up to date it is. Presentation and popularity say nothing about accuracy, and membership list length is not directly relevant to the quality of the survey.

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