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ACCA Applied Knowledge · Management Accounting · Sources of data

Dunmore Co wants to forecast demand for a new product. It is considering (1) a trade association report on sales of similar products, (2) a pilot test in three stores, and (3) its own historical sales records of an older product. Which of the following correctly classifies these sources?

The trade association report is secondary external data, the pilot test is primary data because Dunmore collects it first-hand for this purpose, and its own historical sales records are secondary internal data, being originally recorded for a different purpose.

  1. A1 secondary external, 2 primary, 3 secondary internalCorrect
  2. B1 primary, 2 primary, 3 secondary external
  3. C1 secondary external, 2 secondary internal, 3 primary
  4. D1 secondary internal, 2 primary, 3 primary

Explanation

The trade association report was produced by an outside body for general use: secondary, external. The pilot test is collected first-hand for this specific purpose: primary. Dunmore's own past sales records were gathered for another purpose (recording sales) and are held internally: secondary, internal.

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