Which of the Following Is a Difference Between Second-Party Data

question 20

Multiple Choice

Which of the following is a difference between second-party data and third-party data?

• A) Second-party data are obtained from individuals or entities that are related to the subject, whereas third-party data are obtained from entities that maintain records regarding the subject.
• B) The advantage of second-party data is that it can be obtained independently by the forensic accountant, whereas the advantage of third-party data is that it is outside the subject's ability to manipulate.
• C) Second-party data falls under the realm of primary research, whereas third-party data falls under the realm of secondary research.
• D) Second-party data might require more time to obtain, whereas third-party data are readily available to the forensic accountant.

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Definitions:

Wage Rate

The amount of compensation paid to labor per unit of time, typically expressed as an hourly rate or annual salary.

MRP Schedule

Marginal Revenue Product Schedule, which details the additional revenue generated from employing one more unit of a resource or input.

Economic Rent

Income derived from the ownership of a unique asset or a situation, where no actual work is done to earn it.

MRP Schedule

A chart or table that shows the marginal revenue product of labor, detailing how changes in the quantity of labor employed will impact total revenue generated.