ACCA PAPER f5 PERFORMANCE MANAGEMENT EXAM KIT

Professional Examinations

Paper F5

Performance Management
EXAM KIT


P AP ER F 5 : PE RF OR M AN CE MAN A GE ME N T

British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library.
Published by:
Kaplan Publishing UK
Unit 2 The Business Centre
Molly Millar’s Lane
Wokingham
Berkshire
RG41 2QZ
ISBN: 978-1-78415-227-7
© Kaplan Financial Limited, 2015
Printed and bound in Great Britain
The text in this material and any others made available by any Kaplan Group company does not
amount to advice on a particular matter and should not be taken as such. No reliance should be
placed on the content as the basis for any investment or other decision or in connection with any
advice given to third parties. Please consult your appropriate professional adviser as necessary.
Kaplan Publishing Limited and all other Kaplan group companies expressly disclaim all liability to
any person in respect of any losses or other claims, whether direct, indirect, incidental,
consequential, or otherwise arising in relation to the use of such materials.
All rights reserved. No part of this examination may be reproduced or transmitted in any form or
by any means, electronic or mechanical, including photocopying, recording, or by any information

storage and retrieval system, without prior permission from Kaplan Publishing.
Acknowledgements
The past ACCA examination questions are the copyright of the Association of Chartered Certified
Accountants. The original answers to the questions from June 1994 onwards were produced by
the examiners themselves and have been adapted by Kaplan Publishing.
We are grateful to the Chartered Institute of Management Accountants and the Institute of
Chartered Accountants in England and Wales for permission to reproduce past examination
questions. The answers have been prepared by Kaplan Publishing.
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CONTENTS
Page
Index to questions and answers

v

Analysis of past papers

xi

Exam Technique

xiii

Paper specific information

xv

Kaplan’s recommended revision approach

xix

Kaplan’s detailed revision plan

xxiii

Formulae

xxix

Section
1

Objective Test Questions

1

2

Practice Questions

69

3

Answers to Objective Test Questions

151

4

Answers to Practice Questions

187

Specimen Exam

Key features in this edition
In addition to providing a wide ranging bank of real past exam questions, we have also included
in this edition:
•

An analysis of all of the recent new syllabus examination papers.

•

Paper specific information and advice on exam technique.

•

Our recommended approach to make your revision for this particular subject as effective
as possible.
This includes step by step guidance on how best to use our Kaplan material (Complete
text, pocket notes and exam kit) at this stage in your studies.

•

Enhanced tutorial answers packed with specific key answer tips, technical tutorial notes
and exam technique tips from our experienced tutors.

•

Complementary online resources including full tutor debriefs and question assistance to
point you in the right direction when you get stuck.

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P AP ER F 5 : PE RF OR M AN CE MAN A GE ME N T

You will find a wealth of other resources to help you with your studies on the following sites:
www.MyKaplan.co.uk
www.accaglobal.com/students/

Quality and accuracy are of the utmost importance to us so if you spot an error in any of our
products, please send an email to with full details, or follow the
link to the feedback form in MyKaplan.
Our Quality Co-ordinator will work with our technical team to verify the error and take action to
ensure it is corrected in future editions.

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INDEX TO QUESTIONS AND ANSWERS
INTRODUCTION
The style of current Paper F5 exam questions are different to old syllabus questions. In addition,
the structure of the F5 exam was changed for exams from December 2014 onwards.
Before December 2014, the exam contained five compulsory questions worth 20 marks each. The
exam now contains 20 multiple-choice questions worth 2 marks each, three questions worth
10 marks each and 2 questions worth 15 marks each.
Accordingly, the old ACCA questions within this kit have been adapted to reflect the new style and
structure.
Note that the majority of the questions within this kit are past ACCA exam questions.
The specimen paper is included at the end of this kit.

KEY TO THE INDEX
PAPER ENHANCEMENTS
We have added the following enhancements to the answers in this exam kit:

Key answer tips
Most answers include key answer tips to help your understanding of each question.

Tutorial note
Most answers include more tutorial notes to explain some of the technical points in detail.

Top tutor tips
For selected questions, we “walk through the answer” giving guidance on how to approach the
questions with helpful ‘tips from a top tutor’, together with technical tutor notes.
These answers are indicated with the “footsteps” icon in the index.

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ONLINE ENHANCEMENTS
Timed question with Online tutor debrief
For selected questions, we recommend that they are to be completed in full exam conditions
(i.e. properly timed in a closed book environment).
In addition to the examiner’s technical answer, enhanced with key answer tips and tutorial notes
in this exam kit, online you can find an answer debrief by a top tutor that:
•

works through the question in full

•

points out how to approach the question

•

how to ensure that the easy marks are obtained as quickly as possible, and

•

emphasises how to tackle exam questions and exam technique.

These questions are indicated with the “clock” icon in the index.
Online question assistance
Have you ever looked at a question and not know where to start, or got stuck part way through?
For selected questions, we have produced “Online question assistance” offering different levels of

guidance, such as:
•

ensuring that you understand the question requirements fully, highlighting key terms and
the meaning of the verbs used

•

how to read the question proactively, with knowledge of the requirements, to identify the
topic areas covered

•

assessing the detail content of the question body, pointing out key information and
explaining why it is important

•

help in devising a plan of attack

With this assistance, you should then be able to attempt your answer confident that you know
what is expected of you.
These questions are indicated with the “signpost” icon in the index.

Online question enhancements and answer debriefs are available on MyKaplan at:
www.MyKaplan.co.uk

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IN DE X TO Q UE S T ION S A N D A N S WE R S

OBJECTIVE TEST QUESTIONS
Page number
Question

Answer

SPECIALIST COST AND MANAGEMENT ACCOUNTING TECHNIQUES
Activity-based costing

1

151

Target costing

6

154

Lifecycle costing

8

155

Throughput accounting

11

156

Environmental accounting

14

159

Relevant cost analysis

15

159

Cost volume profit analysis

19

161

Limiting factors

24

164

Pricing decisions

27

165

Make-or-buy and other short-term decisions

30

168

Dealing with risk and uncertainty in decision-making

33

169

Budgetary systems

36

170

Types of budget

37

171

Quantitative analysis in budgeting

40

172

Standard costing

42

175

Material mix and yield variances

44

176

Sales mix and quantity variances

48

178

Planning and operational variances

49

180

Performance analysis and behavioural aspects

51

181

Performance management information systems

52

181

Sources of management information

53

181

Management reports

55

182

Performance analysis in private sector organisations

56

182

Divisional performance and transfer pricing

60

183

Performance analysis in not-for-profit organisation and the public
sector

65

185

External considerations and behavioural aspects

67

186

DECISION-MAKING TECHNIQUES

BUDGETING AND CONTROL

PERFORMANCE MEASUREMENT AND CONTROL

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PRACTICE QUESTIONS
SPECIALIST COST AND MANAGEMENT ACCOUNTING TECHNIQUES
Page number
Question

Answer

Past exam
(Adapted)

194

Abkaber plc

69

187

195
196
197
198
199
200
201
202
203
204

Fit Co lifestyle
ABC is not the solution
Webcams
Environmental management accounting
Gadget Co
Duff Co
The Universal Health System
Thin Co
Jola Publishing Co
Lifecycle costing

70
71
71
73
73
74
75
76
78
79

189
190
191
193
194
196
198
200

202
204

205

Edward Co

80

205

Dec 2007

206

Yam Co

83

210

June 2009

207

Glam Co

84

213

Dec 2014

208

Solar Systems Co

84

215

Dec 2013

Dec 2011
June 2013
Dec 2010
June 2014
June 2012
June 2011
June 2008

DECISION MAKING TECHNIQUES
209
210
211
212

Access Inc
Robber Co
Cut and Stitch

Hammer

86
87
88
89

216
217
220
221

June 2012
June 2010
June 2010

213

Chair Co

90

222

Dec 2014

214
215
216
217

218
219
220
221
222
223
224
225
226
227

Heat One Co
Two Co
Cam Co Pricing
Process Co
Furnival
Theatre
Amelie
Hi Life Co
The Telephone Company
Chocolates Are Forever (CAF)
Foto Frames PLC
Hair Co
Mango Leather

91
91
92
92
93

94
95
96
97
98
98
99
100

224
226
227
228
229
232
233
235
236
238
239
241
244

June 2011
June 2011
June 2013
Dec 2013

B Chemicals

100

245

228

Tablet Co

101

247

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Dec 2014
Dec 2011

Dec 2012

June 2014

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IN DE X TO Q UE S T ION S A N D A N S WE R S

229
230
231
232

233
234
235

Cosmetics Co
Stay Clean
HS Equation
MKL
Gam Co
Gym Bunnies
Recyc

102
102
104
104
105
106
107

250
252
254
256
257
259
261

236

Ticket agent

108

262

237
238
239

Shifters Haulage
Cool Systems
Robber Co

109
109
110

265
267
268

Dec 2010
Dec 2009

June 2014
June 2013

Dec 2008
Jun 2012

BUDGETING AND CONTROL
Page number
Question

Answer

Past exam
(Adapted)

240
241
242
243
244
245
246
247
248
249
250
251
252
253

PC Co participative budgeting
Sauce Co budgeting style
Designit
Newtown School
Mic and learning

NN
Zero-Based Budgeting I
Zero-Based Budgeting II
Sticky Wicket
Participation in Mic Co
Lock Co
Big Cheese Chairs
Henry Company
Jump Performance Appraisal

112
112
112
113
113
114
115
115
115
116
116
117
117
118

272
273
274
275
277

279
280
281
283
284
285
285
287
289

Dec 2011
June 2012
Dec 2012
June 2013
Dec 2013

254

Crumbly Cakes

119

291

Jun 2009

255

Carat

120

294

256
257
258

Safe Soap Co
Spike Co I
Spike Co II

121
122
123

298
299
301

259

Block Co

123

302

260

Valet Co variances

261
262

Choc Co variances
Bed Co

124
125
126

304
305
308

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Dec 2010
Dec 2010
June 2010
Dec 2013
June 2012
Dec 2009
Dec 2008
June 2010

Dec 2014
Dec 2007
Dec 2007

June 2013
June 2014
Dec 2011
Dec 2013

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P AP ER F 5: PE RF OR MA N C E MAN A GE ME N T

PERFORMANCE MEASUREMENT AND CONTROL
Page number
Past exam
(Adapted)

Question

Answer

127
128
128
129
129
130
130
130
131
131
132

133
133
134
134
135
136
138
139

310
311
313
314
315
316
317
319
321
322
324
325
327
329
331
332
336
337
339

June 2014

281

Rotech Group Part 1: W Co
Printing company
CDE
The MG organisation
Open and closed systems
Brace Co
Non financial measures
Jamair
Rotech Group Part 2: C Co
Second Process Co
Division A
B5 cars EIS
Precision Parts
Motor Component Manufacturer
Rees Investments
Accounting Teaching Co
Proposals for Division X
Y and Z
Oliver’s Salon

282
283
284
285
286
287
288

289

Squarize
Bath Co
FP
CTD
Wash Co
Biscuits and Cakes
Public sector organisation
Woodside Charity

140
141
142
143
145
146
147
148

342
344
347
349
350
353
355
357

June 2013

Dec 2011

263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280

x

June 2011
Dec 2014
June 2014
Dec 2013

Dec 2010

June 2009

Dec 2012
June 2012
Jun 2007

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ANALYSIS OF PAST PAPERS
The table below summarises the key topics that have been tested in the new syllabus
examinations to date.
Note that the references are to the number of the question in this edition of the exam kit, but the
Specimen Paper is produced in its original form at the end of the kit and therefore these questions
have retained their original numbering in the paper itself.
D09
Specialist cost and
management
accounting techniques
ABC
Target costing
Lifecycle costing
Throughput accounting
Decision making
techniques
Key factor analysis
Linear programming
Pricing
Relevant costing
Uncertainty and risk

Budgeting
Budgeting
Forecasting
Learning curves
Standard costing and
variance analysis
Standard costing

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D10

Q1

Q4

J11

D11

J12

D12

J13

Q5

D13

J14

Q5

Q1

D14

Q2
Q4

Q3

Q5

Q2
Q1

Q3

Q2
Q1

Q2
Q1

Q1

Q3

Q1
Q5

Q3

Q2

Q1

Q3

Q5
Q5

Q1
Q3

Q3
Q2

Q3
Q3

Q4

Q4

Q5

Q3

Q3

Q3

Q4

Q5

Q1

Q4
Q1,
2

Variances
Labour idle time
Mix
Planning and
operational
Performance
measurement and
control
Performance
measurement
ROI/RI
Transfer pricing
Not for profit
organisations

J10

Q1

Q5

Q1

Q1,4

Q4

Q2

Q5

Q2,
5

Q5

Q1

Q2

Q4

Q5

Q2

Q3

Q2,4

Q4

Q4
Q4

Q4

Q5
Q2

Q1
Q2

Q5

Q4
Q3
Q3

Q5

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EXAM TECHNIQUE
Section A Questions (objective testing)
•

Do not skip any of the material in the syllabus.

•

Read each question very carefully.

•

Double-check your answer before committing yourself to it.

•

Answer every question – if you do not know an answer, you don't lose anything by
guessing. Think carefully before you guess. The examiner has indicated that many
candidates are still leaving blank answers in the real exam.

•

If you are answering a multiple-choice question, eliminate first those answers that you
know are wrong. Then choose the most appropriate answer from those that are left.

•

Remember that only one answer to a multiple-choice question can be right. After you
have eliminated the ones that you know to be wrong, if you are still unsure, guess. Only
guess after you have double-checked that you have only eliminated answers that are
definitely wrong.

•

Don’t panic if you realise you’ve answered a question incorrectly. Getting one question
wrong will not mean the difference between passing and failing.

•

Read the ACCA FAQs article on the website published at the end of 2014:
/>
Section B Questions
•

•

Use the allocated 15 minutes reading and planning time at the beginning of the exam:
–

read the questions and examination requirements carefully, and

–

begin planning your answers.

Divide the time you spend on questions in proportion to the marks on offer:
–

there are 1.8 minutes available per mark in the examination

–

within that, try to allow time at the end of each question to review your answer and
address any obvious issues

Whatever happens, always keep your eye on the clock and do not over run on any part of
any question!
•

•

•

Spend the last five minutes of the examination:
–

reading through your answers, and

–

making any additions or corrections.

If you get completely stuck with a question:
–

leave space in your answer book, and

–

return to it later.

Stick to the question and tailor your answer to what you are asked.
–

pay particular attention to the verbs in the question.

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•

If you do not understand what a question is asking, state your assumptions.
Even if you do not answer in precisely the way the examiner hoped, you should be given some
credit, if your assumptions are reasonable.

•

You should do everything you can to make things easy for the marker.
The marker will find it easier to identify the points you have made if your answers are legible.

•

Written questions:
Your answer should have:
–
a clear structure
–
a brief introduction, a main section and a conclusion.
Be concise. It is better to write a little about a lot of different points than a great deal about one
or two points.

•

Computations:
It is essential to include all your workings in your answers. Many computational questions can
be answered using a standard step by step approach.
e.g. ABC computations, linear programming and variance calculations.
Be sure you know these steps before the exam and practice answering a range of questions
using the same step by step approach.

•

Reports, memos and other documents:
Some questions ask you to present your answer in the form of a report, a memo, a letter or
other document.
Make sure that you use the correct format – there could be easy marks to gain here.

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PAPER SPECIFIC INFORMATION
THE EXAM
FORMAT OF THE EXAM
Section A comprises

20 multiple choice questions of 2 marks each

Section B comprises

3 × 10 mark questions
2 × 15 mark questions

Number of marks
40
30
30

There will be an even mixture of written requirements and computational requirements. The two
15 mark questions will come from decision making techniques, budgeting and control or
performance measurement and control areas of the syllabus.
Total time allowed:

3 hours plus 15 minutes reading and planning time.

Note that:
•

All syllabus areas will be examined.

•

The exam may contain one question from each syllabus area. However, some exam
questions have examined more than one syllabus area in the same question.

•

Questions will be based around a short scenario. It is important to refer back to this
scenario when answering the question.

PASS MARK
The pass mark for all ACCA Qualification examination papers is 50%.

READING AND PLANNING TIME
Remember that all three hour paper based examinations have an additional 15 minutes reading
and planning time.
ACCA GUIDANCE
ACCA guidance on the use of this time is as follows:
This additional time is allowed at the beginning of the examination to allow candidates to read
the questions and to begin planning their answers before they start to write in their answer
books.
This time should be used to ensure that all the information and, in particular, the exam
requirements are properly read and understood.
During this time, candidates may only annotate their question paper. They may not write anything
in their answer booklets until told to do so by the invigilator.

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KAPLAN GUIDANCE
As all questions are compulsory, and 40% of the exam is in MCQ format. There are no decisions to
be made about choice of questions, other than in which order you would like to tackle them.
Therefore, in relation to F5, we recommend that you take the following approach with your
reading and planning time:
•

Answer the MCQs in Section A, and make sure no question is left unanswered. If you
don’t know, have a guess!

•

Skim through the Section B questions, assessing the level of difficulty of each question.

•

For each section B question, write down on the question paper next to the mark allocation
the amount of time you should spend on each part. Do this for each part of every
question.

•

Decide the order in which you think you will attempt each Section B question:
This is a personal choice and you have time on the revision phase to try out different
approaches, for example, if you sit mock exams.
A common approach is to tackle the question you think is the easiest and you are most

comfortable with first.
Psychologists believe that you usually perform at your best on the second and third
question you attempt, once you have settled into the exam, so not tackling the most
difficult question first may be advisable.
It is usual however that students tackle their least favourite topic and/or the most difficult
question in their opinion last.
Whatever you approach, you must make sure that you leave enough time to attempt all
questions fully and be very strict with yourself in timing each question.

•

For each Section B question in turn, read the requirements and then the detail of the
question carefully.
Always read the requirement first as this enables you to focus on the detail of the
question with the specific task in mind.
For computational questions:
Highlight key numbers/information and key words in the question, scribble notes to
yourself on the question paper to remember key points in your answer.
Jot down proformas required if applicable.
For written questions:
Take notice of the format required (e.g. letter, memo, notes) and identify the recipient of
the answer. You need to do this to judge the level of financial sophistication required in
your answer and whether the use of a formal reply or informal bullet points would be
satisfactory.
Plan your beginning, middle and end and the key areas to be addressed and your use of
titles and sub-titles to enhance your answer.

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PAPE R SPE CI FI C I N F OR M A TION

For all questions:
Spot the easy marks to be gained in a question and parts which can be performed
independently of the rest of the question. For example, a definition of a variance or an
explanation of the steps carried out in target costing.
Make sure that you do these parts first when you tackle the question.
Don’t go overboard in terms of planning time on any one question – you need a good
measure of the whole paper and a plan for all of the questions at the end of the
15 minutes.
By covering all questions you can often help yourself as you may find that facts in one
question may remind you of things you should put into your answer relating to a different
question.
•

With your plan of attack in mind, start answering your chosen Section B question with
your plan to hand, as soon as you are allowed to start.

Always keep your eye on the clock and do not over run on any part of any question!

DETAILED SYLLABUS
The detailed syllabus and study guide written by the ACCA can be found at:
www.accaglobal.com/students/

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KAPLAN’S RECOMMENDED REVISION
APPROACH
QUESTION PRACTICE IS THE KEY TO SUCCESS
Success in professional examinations relies upon you acquiring a firm grasp of the required
knowledge at the tuition phase. In order to be able to do the questions, knowledge is essential.
However, the difference between success and failure often hinges on your exam technique on the
day and making the most of the revision phase of your studies.
The Kaplan complete text is the starting point, designed to provide the underpinning knowledge
to tackle all questions. However, in the revision phase, pouring over text books is not the answer.
Kaplan Online fixed tests help you consolidate your knowledge and understanding and are a
useful tool to check whether you can remember key topic areas.
Kaplan pocket notes are designed to help you quickly revise a topic area, however you then need
to practice questions. There is a need to progress to full exam standard questions as soon as
possible, and to tie your exam technique and technical knowledge together.
The importance of question practice cannot be over-emphasised.
The recommended approach below is designed by expert tutors in the field, in conjunction with
their knowledge of the examiner and their recent real exams.
The approach taken for the fundamental papers is to revise by topic area. However, with the
professional stage papers, a multi topic approach is required to answer the scenario based
questions.
You need to practice as many questions as possible in the time you have left.

OUR AIM
Our aim is to get you to the stage where you can attempt exam standard questions confidently, to
time, in a closed book environment, with no supplementary help (i.e. to simulate the real
examination experience).
Practising your exam technique on real past examination questions, in timed conditions, is also
vitally important for you to assess your progress and identify areas of weakness that may need
more attention in the final run up to the examination.
In order to achieve this we recognise that initially you may feel the need to practice some
questions with open book help and exceed the required time.
The approach below shows you which questions you should use to build up to coping with exam
standard question practice, and references to the sources of information available should you
need to revisit a topic area in more detail.
Remember that in the real examination, all you have to do is:
•

attempt all questions required by the exam

•

only spend the allotted time on each question, and

•
get them at least 50% right!
Try and practice this approach on every question you attempt from now to the real exam.

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EXAMINER COMMENTS
We have included the examiners comments to the specific new syllabus examination questions in
this kit for you to see the main pitfalls that students fall into with regard to technical content.
However, too many times in the general section of the report, the examiner comments that
students had failed due to:
•

“not answering the question”

•

“a poor understanding of why something is done, not just how it is done”

•

“simply writing out numbers from the question. Candidates must understand what the
numbers tell them about business performance”

•

“a lack of common business sense” and

•

“ignoring clues in the question”.

Good exam technique is vital.

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KA PL AN ’S RE CO M ME N DE D RE VI SI ON APP R OA CH

THE KAPLAN PAPER F5 REVISION PLAN
Stage 1: Assess areas of strengths and weaknesses
Review the topic listings in the revision table plan below

Determine whether or not the area is one with which you are comfortable

Comfortable
with the technical content

Not comfortable
with the technical content

Read the relevant chapter(s) in
Kaplan’s Complete Text
Attempt the Test your understanding
examples if unsure of an area
Attempt appropriate Online Fixed
Tests

Review the pocket notes on this area

Stage 2: Practice questions
Follow the order of revision of topics as recommended in the revision table plan below and

attempt the questions in the order suggested.
Try to avoid referring to text books and notes and the model answer until you have completed
your attempt.
Try to answer the question in the allotted time.
Review your attempt with the model answer and assess how much of the answer you achieved in
the allocated exam time.

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Fill in the self-assessment box below and decide on your best course of action.

Comfortable with question attempt

Only revisit when comfortable with
questions on all topic areas

Not comfortable with question attempts

Focus on these areas by:
•
Reworking test your understanding
examples in Kaplan’s Complete Text
•
Revisiting the technical content from
Kaplan’s pocket notes

•
Working any remaining questions on
that area in the exam kit
•
Reattempting an exam standard
question in that area, on a timed,
closed book basis

Note that :
The “footsteps questions” give guidance on exam techniques and how you should have
approached the question.
The “clock questions” have an online debrief where a tutor talks you through the exam
technique and approach to that question and works the question in full.

Stage 3: Final pre-exam revision
We recommend that you attempt at least one three hour mock examination containing a set of
previously unseen exam standard questions.
It is important that you get a feel for the breadth of coverage of a real exam without advanced knowledge of
the topic areas covered – just as you will expect to see on the real exam day.

Ideally this mock should be sat in timed, closed book, real exam conditions and could be:
•

a mock examination offered by your tuition provider, and/or

•

the Specimen paper in the back of this exam kit, and/or

•

the last real examination paper (available shortly afterwards on MyKaplan with “enhanced
walk through answers” and a full “tutor debrief”).

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KA PL AN P U BLI SH IN G


KAPLAN’S DETAILED REVISION PLAN
Topic

Complete
Pocket
Questions to
Text
note
attempt
Chapter
Chapter
Specialist cost and management accounting techniques
2
2
1 to 13
− ABC
inclusive in
Section A.
Question 200
in Section B.

−

Target costing

KA PL AN P U BLI SH IN G

2

2

Tutor guidance

Date
attempted

Self assessment

This is a key costing technique. In
Question 200, ‘Gadget Co’, make sure
that you can calculate the cost per unit
using both full absorption costing, and an
ABC approach. As well as the calculations
in this question, be ready to explain the
reasons for the development of ABC, the
pros and cons of ABC and the
implications of ABC.
Successful completion of the
recommended questions should reassure
you that you would be able to tackle an
ABC question in the exam.

This is an excellent question on target
14 to 20
inclusive in costing in the not-for-profit –ector. It is
important that you can calculate the
Section A.
Question 202 total cost and the cost gap and that you
in Section B. are able to discuss the process of target
costing as well as recommending
methods for closing the cost gap. Exam
questions may also ask for a discussion
of the implications of target costing or of
the use of target costing in the service
industry.

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P AP ER F 5 : PE RF OR M AN CE MAN A GE ME N T

−

Lifecycle costing

2

2

−

Environmental

management
accounting

2

2

−

Throughput
accounting

2

2

3

3

Decision making techniques
− Cost volume profit
analysis

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21 to 27
inclusive in
Section A.
Question 205

in Section B.
36 to 40 in
Section A.
Question 273
b) in Section
B.

This is a relatively straightforward
technique but it is still important to
practice at least one question to ensure
you have the required knowledge.

53 to 62
inclusive in
Section A.
Question 224
in Section B.

A good question covering the very
examinable topic of multi-products
breakeven charts. A complete question
with well-split requirements that also
refer to an article on the ACCA website an absolute must.

This is a good written question on EMA.
It is important that you can explain what
is meant by EMA and that you
understand how it should be used. Make
sure that you reference your points back
to the scenario.

28 to 35
Two good questions covering the
inclusive in different calculations and written areas
Section A.
that could be examined on throughput
Question 203 accounting. This is a more difficult
in Section B. costing technique and it is therefore
important to complete these questions
before the exam.

KA PL AN P U BLI SH IN G


KA PL AN ’S DE T AILE D RE V ISI ON P L A N

−

Linear programming

4

4

63 to 69
inclusive in
Section A.
Question 229
in Section B.

−

Pricing

5

5

−

Relevant costing

6

6

70 to 81
inclusive in
Section A.
Question 231
in Section B.
41 to 52
inclusive in
Section A.
Question 223
in Section B.

−

Uncertainty and risk

7

7

KA PL AN P U BLI SH IN G

Excellent questions on linear
programming. In addition to the six step
approach, the examiner is likely to
examine some peripheral areas such as
shadow prices, slack or linear
programming assumptions.
An old exam question that has been split
to fit the new format. It mixes
calculations with written parts.

This is a tricky area but a methodical
approach to answering questions should
help. If you are not sure about a
particular number, take a guess and
move on. The aim is not to get the
question 100% correct but to get
through the question in time and to
score a pass in the question.
The calculations are important and the
87 to 94
inclusive in decision trees techniques must be well
rehearsed. Look for other questions to
Section A.
Question 239 practice in this area as you must also be

in Section B. prepared to discuss the various methods
of managing risk. Some of the terms,
e.g. minimax regret, make this area
appear difficult but the underlying
concepts are relatively straightforward.

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