ACCA Applied Knowledge · Management Accounting · Accounting for management
A manufacturing company wants to know how many units of a component were issued to production last month. Which source of information would be an internal source?
Stores issue records are the internal source. They are generated within the company's own inventory system and show quantities issued to production, whereas government statistics, trade association surveys and competitor reports come from outside the organisation and are therefore external sources.
- AThe company's stores issue recordsCorrect
- BA government statistical bulletin on industrial output
- CA trade association survey of component prices
- DA competitor's published annual report
Explanation
Internal sources come from within the organisation, such as stores records, payroll and sales ledgers. Stores issue records show what was issued to production. The other options are all external sources produced outside the company.
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