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ACCA Applied Knowledge · Management Accounting · Sources of data

Which of the following is a disadvantage of using secondary data rather than primary data for a management accounting project?

A key disadvantage of secondary data is that it may not be relevant or current for the specific purpose because it was originally collected for a different reason. It is typically cheaper and faster to obtain than primary data.

  1. AIt may not be entirely relevant or up to date for the specific purposeCorrect
  2. BIt is usually more expensive to obtain
  3. CIt cannot be obtained from external sources
  4. DIt always has to be collected by interview

Explanation

Secondary data was collected for another purpose, so it may be out of date, defined differently or not exactly relevant. It is usually cheaper and quicker than primary data, and it commonly comes from external sources.

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