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ACCA Applied Knowledge · Management Accounting · Sources of data

Which of the following is an advantage of using secondary data rather than primary data when preparing a market-size estimate?

Secondary data is usually quicker and cheaper to obtain because it already exists and was collected by someone else. Its drawbacks are that it may not fit the specific need, the user cannot control collection methods, and it may be out of date.

  1. AIt is usually quicker and cheaper to obtainCorrect
  2. BIt is tailored precisely to the organisation's needs
  3. CThe organisation controls how the data was collected
  4. DIt is always more up to date

Explanation

Secondary data already exists, so it is generally faster and cheaper to obtain. It was collected for another purpose, so it may not fit needs exactly, the user has no control over collection methods, and it may be out of date.

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