ACCA Applied Knowledge · Management Accounting · Sources of data
Which of the following is an example of secondary data for a manufacturing company's budgeting team?
Industry average labour rates published by a government statistics office are secondary data because someone else collected them for a general purpose. Surveys, observation and interviews carried out by the budgeting team itself would all be primary data.
- AResults of a telephone survey the team conducted last week
- BIndustry average labour rates published by a government statistics officeCorrect
- CObservation of machine idle time on the factory floor by the team
- DInterviews held with production supervisors about material waste
Explanation
Published government labour-rate statistics were collected by another body for a general purpose, so they are secondary. The other three are gathered first-hand by the team: survey, observation and interviews are all primary methods.
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