ExpertMedium2 marksMultiple Choice
ACCA · Question 03 · The nature, source and purpose of management information
Section A
AgriGrow operates a network of automated hydroponic farms. The management accountant is gathering data to prepare the monthly performance dashboard.
Which of the following represent INTERNAL sources of management information for AgriGrow? (Select ALL that apply)
Section A
AgriGrow operates a network of automated hydroponic farms. The management accountant is gathering data to prepare the monthly performance dashboard.
Which of the following represent INTERNAL sources of management information for AgriGrow? (Select ALL that apply)
Answer options:
A.
The company's automated payroll system
B.
Government reports on national agricultural subsidies
C.
Data logs from the farm's moisture and yield sensors
D.
Competitor pricing data from industry publications
How to approach this question
Identify which data originates from within the organization itself versus data gathered from outside entities.
Full Answer
Internal sources of information are generated within the organization (e.g., accounting records, payroll, internal sensor data). External sources come from outside the organization (e.g., government statistics, competitor data, market research).
Common mistakes
Selecting external market data thinking it is 'internalized' once downloaded.
Practice the full ACCA MA — Management Accounting Practice Exam 6
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