ACCA Applied Knowledge · Management Accounting · Sources of data
A manufacturing company wants to find out the average price its competitors charge for a similar product. Which of the following is an external source of data for this purpose?
A published industry report from a trade association is the external source. It is produced outside the company and contains market and competitor pricing information, whereas the sales ledger, payroll and inventory records are all internally generated data.
- AThe company's own sales ledger
- BA published industry report from a trade associationCorrect
- CThe company's payroll records
- DThe company's inventory records
Explanation
External data originates outside the organisation. A trade association's published industry report contains competitor and market information. The sales ledger, payroll and inventory records are all generated inside the company, so they are internal sources.
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