Tài liệu ACCA mới nhất từ BPP môn F5

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PAPER F5
PERFORMANCE MANAGEMENT
FOR EXAMS UP TO JUNE 2014
BPP Learning Media is the sole ACCA Platinum Approved Learning Partner – content

for the ACCA qualification. In this, the only Paper F5 Practice and Revision Kit to be
reviewed by the examiner:
 We discuss the best strategies for revising and taking your ACCA exams
 We show you how to be well prepared for your exam
 We give you lots of great guidance on tackling questions
 We show you how you can build your own exams
 We provide you with three mock exams including the December 2012 exam
 We provide the ACCA examiner's answers as well as our own to the June and
December 2012 exams as an additional revision aid
Our Passcard and i-Pass product also supports this paper.

ii


First edition 2008
Seventh edition January 2013
ISBN 9781 4453 6645 6
(previous ISBN 9781 4453 7994 4)
e-ISBN 9781 4453 6948 8

British Library Cataloguing-in-Publication Data
A catalogue record for this book
is available from the British Library
Published by
BPP Learning Media Ltd
BPP House, Aldine Place
London W12 8AA

www.bpp.com/learningmedia
Printed in the United Kingdom by

Ricoh
Ricoh House
Ullswater Crescent
Coulsdon
CR5 2HR

Your learning materials, published by BPP Learning
Media Ltd, are printed on paper sourced from
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All our rights reserved. No part of this publication may be
reproduced, stored in a retrieval system or transmitted, in
any form or by any means, electronic, mechanical,
photocopying, recording or otherwise, without the prior
written permission of BPP Learning Media Ltd.
We are grateful to the Association of Chartered Certified
Accountants for permission to reproduce past
examination questions. The suggested solutions in the
exam answer bank have been prepared by BPP Learning
Media Ltd, except where otherwise stated.

©
BPP Learning Media Ltd
2013



iii

Contents
Page

Finding questions
Question index v
Topic index ix
Helping you with your revision – the ONLY F5 Practice and
Revision Kit to be reviewed by the examiner
xi
Revising F5
Topics to revise xiii
Question practice xiii
Passing the F5 exam xiii
Exam formulae xv
Exam information xvi
Useful websites xxii
Planning your question practice
BPP Learning Media’s question plan xxiii
Build your own exams xxvi
Questions and answers
Questions 3
Answers 87
Exam practice
Mock exam 1
 Questions 313
 Plan of attack 323
 Answers 324
Mock exam 2
 Questions 335
 Plan of attack 345
 Answers 346
Mock exam 3 (December 2012)
 Questions 363

 Plan of attack 373
 Answers 375
ACCA examiner's answers
 June 2012 391
 December 2012 397

Review form
iv
Finding questions
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Using your BPP Learning Media products
This Kit gives you the question practice and guidance you need in the exam. Our other products can also help you pass:
 Learning to Learn Accountancy gives further valuable advice on revision
 Passcards provide you with clear topic summaries and exam tips
 Success CDs help you revise on the move
 i-Pass CDs offer tests of knowledge against the clock
You can purchase these products by visiting

Finding questions
v

Question index
The headings in this checklist/index indicate the main topics of questions, but questions often cover several
different topics.
Questions set under the old syllabus Financial Management and Control and Performance Management papers are
included because their style and content are similar to those which appear in the F5 exam. The questions have been
amended to reflect the current exam format.

Time
Page number

Marks
allocation
Mins

Question

Answer

Part A: Specialist cost and management accounting
techniques


1 Preparation question: Cassiop n/a n/a 3 87
2 Linacre Co (FMC, 12/05, amended) 20 36 4 90
3 Z Co 20 36 4 92
4 Triple (Pilot paper, amended) 20 36 5 93
5 Brick by Brick (6/10) 20 36 6 95
6 Jola Publishing Co (6/08, amended) 20 36 7 98
7 The Gadget Co (12/10) 20 36 8 100
8 Admer 20 36 8 102
9 UHS (6/12) 20 36 9 104
10 Edward Limited (12/07, amended) 20 36 10 106
11 Cambs Co 20 36 11 108
12 Fit Co (12/11) 20 36 12 110
13 Sapu 20 36 13 113
14 Throughput accounting 20 36 13 115
15 A Co 20 36 14 116
16 Yam Co (6/09) 20 36 15 118
17 Thin Co (6/11) 20 36 15 121

Part B: Decision-making techniques


18 ABC plc 20 36 18 124
19 Devine Desserts 20 36 19 127
20 Preparation question: Linear programming n/a n/a 20 128
21 LD Co 20 36 21 131
22 Higgins Co (6/08, amended) 20 36 21 133
23 Cut and Stitch (6/10) 20 36 22 138
24 The Cosmetic Co (12/10) 20 36 23 140
25 RB Co 20 36 24 144
26 New product 20 36 24 146
27 IB 20 36 25 148
28 A1 20 36 26 151
29 Heat Co (6/11) 20 36 26 153
vi
Finding questions
Time
Page number


Marks
allocation
Mins
Question
Answer

30 T Co (12/11) 20 36 27 156
31 Sunrise 20 36 28 160

32 Ennerdale 20 36 30 161
33 John Robertson 20 36 31 163
34 Robber Co (6/12)
20 36 32 164
35 Pixie Pharmaceuticals
20 36 33 168
36 Sniff Limited (12/07, amended)
20 36 33 169
37 Stay Clean (12/09)
20 36 34 171
38 Bits and Pieces (6/09)
20 36 36 173
39 BDU Co
20 36 36 175
40 Envico (PM, 12/05, amended)
20 36 37 177
41 Rotanola Co
20 36 38 179
42 Cement Co (6/11)
20 36 38 181
43 Preparation question: Decision trees
n/a n/a 39 184
44 Elsewhere
20 36 40 185
45 Bargain Co
20 36 40 187
46 SH (12/08, amended)
20 36 41 188

Part C: Budgeting

47 Preparation question: Budgeting
n/a n/a 42 189
48 Preparation question: Happy Hotels n/a n/a
42 192
49 PC Co (12/11) 20 36
42 193
50 Brunti
20 36 43 196
51 Sauce Co (6/12 / 12/09, amended)
20 36 43 198
52 Wargrin (12/08, amended)
20 36 44 200
53 ZBB (12/10)
20 36 44 202
54 Northland (6/09)
20 36 45 205
55 Velo Racers (PM, 6/03, amended)
20 36 46 207
56 Q Organisation
20 36 46 209
57 BFG (Pilot paper, amended)
20 36 47 211
58 HC (12/08, amended)
20 36 48 213
59 Big Cheese Chairs (12/09)
20 36 49 215

Part D: Standard costing and variances analysis

60 Preparation question: Mermus (FMC, 12/04, amended) n/a n/a 50 217
61 Preparation question: Chaff Co (6/08, amended) n/a n/a 50 218
62 Lock Co (6/12, amended) 20 36 52 220
63 Carat (FMC, 12/03, amended) 20 36 52 223
64 Choc Co (12/11, amended) 20 36 53 225
65 Linsil (FMC, 6/04, amended) 20 36 54 229



Finding questions
vii

Time
Page number


Marks
allocation
Mins
Question
Answer
66 Simply Soup (Pilot paper, amended) 20 36 55 230
67 Spike Limited (12/07, amended) 20 36 56 233
68 Crumbly Cakes (6/09, amended) 20 36 57 235
69 Secure Net (12/09, amended) 20 36 58 237
70 Carad Co (12/10, amended) 20 36 58 240
71 Noble (6/11) 20 36 59 243
72 DIY 20 36 60 245

73 Meals 20 36 61 247

Part E: Performance management systems,
measurement and control


74 Story 20 36 63 250
75 Trendy clothing 20 36 63 252
76 Lush Co 20 36 64 254
77 ICE 20 36 65 256
78 Beachy 20 36 65 257
79 Viga 20 36 66 259
80 Heighway 20 36 66 261
81 Preparation question: Accounting for business n/a n/a 67 263
82 Biscuits and cakes (6/12) 20 36 68 265
83 Brace Co (6/11) 20 36 69 268
84 Investment group 20 36 70 270
85 Boats and cladding 20 36 71 272
86 Pasta division 20 36 71 273
87 Preparation question: Transfer pricing n/a n/a 72 274
88 Bath Co (12/11) 20 36 73 276
89 FP Photocopiers and SW Ltd 20 36 74 280
90 Hammer (6/10) 20 36 75 281
91 All Premier Services (FMC, 12/01, amended) 20 36 76 283
92 Woodside (FMC, 6/07, amended) 20 36 76 287
93 Preston Financial Services (Pilot paper, amended) 20 36 77 289
94 Ties Only Limited (12/07) 20 36 78 291
95 Jump (6/10) 20 36 79 293
96 The Accountancy Teaching Co (12/10) 20 36 80 295
97 Bridgewater Co (6/08, amended) 20 36 81 299

98 PC (12/08, amended) 20 36 82 302
99 Oliver's Salon (6/09) 20 36 83 304
100 Thatcher International Park (12/09) 20 36 84 307

viii
Finding questions
Mock exam 1
Questions 101 to 105
Mock exam 2
Questions 106 to 110
Mock exam 3 (December 2012)
Question 111 to 115
Planning your question practice
Our guidance from page xxvi shows you how to organise your question practice, either by attempting questions
from each syllabus area or by building your own exams – tackling questions as a series of practice exams.

June and December 2013 exams
BPP’s answers for these exams will be available for free after the exams on


Finding questions
ix

Topic index
Listed below are the key Paper F5 syllabus topics and the numbers of the questions in this Kit covering those
topics.
If you need to concentrate your practice and revision on certain topics or if you want to attempt all available
questions that refer to a particular subject, you will find this index useful.
Syllabus topic Question numbers

Absorption costing 1, 2, 3, 4, 5, Mock 2 Q1, Mock 3 Q5
Activity based costing 2, 3, 4, 5, 6, 7, 8, 13, 50, Mock 2 Q2, Mock 3 Q5

Balanced Scorecard 81, 83, Mock 2 Q4
Behavioural aspects of standard costing 62, 63, 65, 69, 70
Budgetary systems and types 48, 50, 51, 52, 53, Mock 1 Q2, Mock 3 Q4
Budgeting objectives 47, 49, 95
Cost function 25, 41
Cost volume profit (CVP) analysis 18, 19, Mock 3 Q1
Decision rules 39, 40, 41, 42, 44, 46
Decision trees 43, 44, 45
Demand 25, 41
Environmental accounting 15, 27
Expected values 39, 40, 41, 54
Financial performance indicators 80, 81, 84, 85, 86, 91, 93, 94, 95, 96, 97, 98, 99,
100, Mock 1 Q4, Mock 3 Q3
Fitzgerald & Moon Building Block model 84, 99
Flexible budgets 60, 71, 73
Forecasting 10, 97
Further processing decision 32, 38
Incremental costs and revenues 38
Learning curve 55, 56, 57, 58, 59, Mock 1 Q5
Life-cycle costing 10, 12, 13, 52, Mock 1 Q1
Linear programming 20, 21, 22, 23, 24
Make-or-buy decisions 34, 35
Management reports 78, 79
Marginal costing 1, 14, 61
Market research 25, 41, Mock 1 Q1
Material mix and yield variances 63, 64, 65, 66, 68, 72
Non-financial performance indicators 80, 81, 87, 93, 94, 96, 98, 99, 100, Mock 1 Q4

Not-for-profit organisations 51, 53, 91, 92
Operating statements 92, Mock 2 Q3
Outsourcing 34, 35, 36, 37
Performance management information systems 74, 75
Planning and operational variances 65, 67, 68, 69, 70, 72, Mock 3 Q2
Pricing decisions 3, 4, 5, 25, 26, 27, 28, 29, 33, 37, 38, 58, Mock 2 Q2
Process costing 32
Quantitative analysis in budgeting 54, 55, 56, 57, 59
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Finding questions
Syllabus topic Question numbers

Relevant costs 30, 31, 32, 33
Research techniques 40, 46
Residual income 82, 83, 84, 85, 86, Mock 2 Q4
Return on investment 81, 82, 83, 84, 85, 86, 98, Mock 2 Q4
Revised budgets 60, 67,
Risk and uncertainty in decision making 39, 40, 41, 46, Mock 2 Q5
Sales mix and quantity variances 62, 71, 73
Sensitivity analysis 39, 41
Short-termism 80, 97
Shutdown decisions 37
Sources of management information 76, 77
Spreadsheets Mock 3 Q4
Standard costs 62, 63, 65, 66, 69, 70, Mock 1 Q3
Target costing 10, 13, Mock 1 Q1
Throughput accounting 13, 14, 15, 16, 17
Transfer pricing 84, 85, 88, 89, 90, Mock 3 Q5
Variance analysis 60, 61, 62, 63, 64, 65, 66, 67, 68, 69 70, 71, 72, 73
Mock 1 Q3, Mock 2 Q3, Mock 3 Q2

Using your BPP Learning Media Practice and Revision Kit
xi

Helping you with your revision – the ONLY F5 Practice and
Revision Kit to be reviewed by the examiner!
BPP Learning Media – the sole Platinum Approved Learning Partner -
content
As ACCA’s sole Platinum Approved Learning Partner – content, BPP Learning Media gives you the unique
opportunity to use examiner-reviewed revision materials for the 2013 and June 2014 exams. By incorporating the
examiner’s comments and suggestions regarding syllabus coverage, the BPP Learning Media Practice and Revision
Kit provides excellent, ACCA-approved support for your revision.
Tackling revision and the exam
Using feedback obtained from ACCA examiners as part of their review:
 We look at the dos and don’ts of revising for, and taking, ACCA exams
 We focus on Paper F5; we discuss revising the syllabus, what to do (and what not to do) in the exam, how to
approach different types of question and ways of obtaining easy marks

Selecting questions
We provide signposts to help you plan your revision.
 A full question index
 A topic index listing all the questions that cover key topics, so that you can locate the questions that provide
practice on these topics, and see the different ways in which they might be examined
 BPP's question plan highlighting the most important questions and explaining why you should attempt
them
 Build your own exams, showing how you can practise questions in a series of exams
Making the most of question practice
At BPP Learning Media we realise that you need more than just questions and model answers to get the most from

your question practice.
 Our Top tips provide essential advice on tackling questions, presenting answers and the key points that
answers need to include
 We show you how you can pick up easy marks on questions, as we know that picking up all readily available
marks often can make the difference between passing and failing
 We include marking guides to show you what the examiner rewards
 We include examiners’ comments to show you where students struggled or performed well in the actual
exam
 We refer to the 2012 BPP Study Text (for exams up to June 2014) for detailed coverage of the topics
covered in questions
 In a bank at the end of this Kit we include the examiner's answers to the June and December 2012 papers.
Used in conjunction with our answers they provide an indication of all possible points that could be made,
issues that could be covered and approaches to adopt.
xii
Using your BPP Learning Media Practice and Revision Kit
Attempting mock exams
There are three mock exams that provide practice at coping with the pressures of the exam day. We strongly
recommend that you attempt them under exam conditions. Mock exams 1 and 2 reflect the question styles and
syllabus coverage of the exam; Mock exam 3 is the December 2012 paper.


Revising F5
xiii

Revising F5
Topics to revise
All questions are compulsory so you must revise the whole syllabus. Selective revision will limit the number of
questions you can answer and hence reduce your chances of passing. It is better to go into the exam knowing a
reasonable amount about most of the syllabus rather than concentrating on a few topics to the exclusion of the rest.
Question practice

Practising as many exam-style questions as possible will be the key to passing this exam. You must do questions
under timed conditions and ensure you write full answers to the discussion parts as well as doing the calculations.
Avoid looking at the answer until you have finished a question. Your biggest problem with F5 questions may be
knowing how to start and this needs practice.
Also ensure that you attempt all three mock exams under exam conditions.
Passing the F5 exam
Displaying the right qualities
 You are expected to have a core of management accounting knowledge from your previous studies eg
papers 1.2 (old syllabus) or F2 (new syllabus)
 You will be required to carry out calculations, with clear workings and a logical structure
 You will be required to interpret data
 You will be required to explain management accounting techniques and discuss whether they are
appropriate for a particular organisation
 You must be able to apply your skills in a practical context
 You must understand what numbers tell you about the performance of a business
Avoiding weaknesses
 There is no choice in this paper, all questions have to be answered. You must therefore study the entire
syllabus, there are no short-cuts
 Questions will be based on simple scenarios and answers must be focused and specific to the organisation
 Answer plans will help you to focus on the requirements of the question and enable you to manage your
time effectively
 Answer all parts of the question. Even if you cannot do all of the calculation elements, you will still be able to
gain marks in the discussion parts
 Make sure your answers focus on practical applications of management accounting, common sense is
essential!
xiv
Revising F5
Using the reading time
 Speed read through the question paper, jotting down any ideas that come to you about any of the questions
 Decide the order in which you are likely to tackle questions (probably easiest questions first, most difficult

questions last)
 Spend the remainder of the reading time reading the questions in detail analysing scenarios, jotting down
plans (any plans written on the question paper should be reproduced in the answer booklet)
 When you can start writing get straight on with the questions you have planned in detail
Gaining the easy marks
Easy marks in this paper tend to fall into two categories.
Calculations
There will be some relatively straightforward calculations at the start of the question and they will then probably get
progressively more difficult. If you get stuck, make an assumption, state it and move on.
Discussions
The examiner has stated she intends, wherever possible, to separate discussion from calculations. This means that
you should be able to gain marks from making sensible, practical comments without having to complete the
calculations.
Discussions that are focused on the specific organisation in the question will gain more marks than regurgitation of
knowledge. Read the question carefully and more than once, to ensure you are actually answering the specific
requirements.
Pick out key words such as 'describe', 'evaluate' and 'discuss'. These all mean something specific.
 'Describe' means to communicate the key features of
 'Evaluate' means to assess the value of
 'Discuss' means to examine in detail by argument
Clearly label the points you make in discussions so that the marker can identify them all rather than getting lost in
the detail.
Provide answers in the form requested, particularly using report format if asked for and giving recommendations if
required.

Revising F5
xv

Exam formulae
Set out below are the formulae which you will be given in the exam, and formulae which you should learn. If you are

not sure what the symbols mean, or how the formulae are used, you should refer to the appropriate chapter in the
Study Text.
Exam formulae
Chapter in Study Text

Demand curve 5
P = a – bQ
b =
change in price
change in quantity

a = price when Q = 0
MR = a – 2bQ
Learning curve 10
Y = ax
b

Where Y = the cumulative average time per unit to produce X units
a = the time taken for the first unit of output
x = the cumulative number of units
b = the index of learning (log LR/log 2)
LR = the learning rate as a decimal

xvi
Revising F5
Exam information
Important information regarding the F5 examiner
The examiner for this paper is Ann Irons, who replaced Geoff Cordwell from the December 2010 sitting onwards.
Ann Irons has written several articles in Student Accountant, including one on how to approach the paper
(September 2010 issue). Make sure you read these articles to gain further insight into what the examiner is looking

for.
Format of the exam
Five compulsory questions of 20 marks each.
Time allowed: 3 hours plus 15 minutes reading time.
The examination will comprise a mix of computational and discursive elements.
Additional information
The Study Guide provides more detailed guidance on the syllabus.
December 2012


1 CVP analysis: C/S ratio; break-even point; multi-product PV chart
2 Variance analysis: labour rate and efficiency; planning and operational variances
3 Performance measurement: financial performance; non-financial performance
4 Budgeting: rolling budgets; the use of spreadsheets in budgeting
5 Costing methods: absorption costing; activity-based costing; transfer pricing
The December 2012 paper is Mock Exam 3 in this Kit.
June 2012
Question in this Kit
1 Short-term decisions; make or buy?; relevant costing 34
2 Costing methods: target costing 9
3 Budgeting; quantitative analysis in budgeting; behavioural aspects of budgeting 51
4 Variance analysis: sales variances; standard costing v TQM 62
5 Performance measurement; divisional performance measures; transfer pricing 82
Examiner's comments. This paper consisted of five compulsory 20 mark questions.
The structure of the paper remained the same as in previous sittings – five questions each taken from the five main
syllabus areas worth 20 marks each. The proportion of narrative to computational requirements was 52% to 48%.
This does vary slightly from sitting to sitting. The pass rate on this paper was slightly higher than in recent sittings.
This may be due to the fact that, some requirements had plenty of straightforward marks that well-prepared
candidates could earn.
It was really good to see that many candidates followed my previous advice about answering the questions in the

order of their best questions first, and then also made sure to get the easy marks available on each question first
too.

Revising F5
xvii

December 2011
Question in this Kit
1 Short-term decisions; relevant costing 30
2 Divisional performance; transfer pricing 88
3 Budgeting; objectives of budgetary control; participative budgeting 49
4 Costing methods: life-cycle costing; learning curve 12
5 Variance analysis; material usage, mix and yield; activity-based costing 64
Examiner's comments. This paper consisted of five compulsory 20 mark questions.
The structure of the paper remained the same as in previous sittings – five questions worth 20 marks each. The
paper included a purely narrative question -question three – and overall, the proportion of narrative to
computational requirements was 46% to 54%.
The pass rate on this paper was very similar to the previous sitting. There didn’t seem to be any one particular
question that caused a problem to the majority of candidates. The biggest single reason for failure in the F5 exam in
December 2011 was definitely the big knowledge gaps that many candidates seem to have. This was obvious from
the fact that a significant number of candidates made really good attempts at one or two questions but then, after
that, it was obvious that they didn’t know any of the other areas being examined. To their credit, many candidates
seemed to have taken on board my advice to start with their best question first and then continue to answer the
questions in the order of their best questions. This did mean that it always came as a bit of a shock during marking
when a candidate did two near perfect first questions, scoring maybe 36 out of 40, but then failed to secure the
remaining 14 marks over the next three questions. As I’ve always said before, don’t try and question spot in this
exam. It’s a dangerous approach and unlikely to work.
On the positive side, candidates also seem to be taking advice about getting the easy marks first on a question. This
often meant that, for example, candidates answered the written requirement in 4 (c) before tackling the numbers in
4(a) and (b), which they may not have been quite so sure about.

June 2011
Question in this Kit
1 Risk and uncertainty: decision rules; pay-off table 42
2 Pricing decisions: demand function: MC = MR; pricing strategies 29
3 Variance analysis: flexed budget; sales mix and quantity variances 71
4 Performance measurement: balanced scorecard; ROI and RI 83
5 Costing methods: throughput accounting 17
Examiner's comments. This paper consisted of five compulsory 20 mark questions.
The paper was 57% computational and 43% narrative.
The pass rate on this paper was slightly lower than the previous sitting. It was clear from marking that question 1
seemed to pose a particular problem for candidates, with the majority being unable to construct an accurate payoff
table. Similarly, whilst many candidates were able to produce the flexed budget required for question 3, most were
not able to tackle the discursive elements of this question. On the whole, question two was the best answered,
although few candidates were able to calculate an optimum price and quantity for the product in this question.
While there were notable amount of really high marks (in the 70s and 80s) but there was also a significant amount
of really low marks (many less than 20%). It looked like some candidates yet again had not revised some of the key
areas. F5, by its nature, is a fairly challenging paper. It is a paper that requires a significant level of work in order to
pass it.
xviii
Revising F5
It relies on learning/revising a substantial number of management accounting techniques and then also being able
to explain them and understand the impact of their results on the business. If you want to pass it, put some work in
and use all of the resources available to you – past exam papers, Student Accountant articles, past examiner’s
reports etc, all of which are available on the ACCA’s website.
December 2010
Question in this Kit
1 Variance analysis: sales variances; material planning and operational; labour rate and
efficiency
70
2 Performance measurement: financial performance; non-financial performance 96

3 Linear programming: constraints; graph; optimal solution; shadow price 24
4 Costing methods: absorption costing; activity based costing 7
5 Budgeting: incremental budgeting; zero-based budgeting; public sector 53
Examiner's comments. This paper consisted of five compulsory 20 mark questions.
The pass rate on this paper saw a drop from previous recent sessions. I believe that the reason for this is primarily
that candidates tried to question spot. So, for example, because linear programming came up in June 2010, the
belief was that it would not come up again in December 2010. The lesson to be learnt is that you can’t question spot
in these exams. You have to make sure that you are comfortable with every area of the syllabus; otherwise you may
be caught out. Anyone who watched the ‘Examiners’ Special’ online in September would have got this message.
The paper was 54% computational and 46% narrative, since within question two there were a certain number of
marks available for the calculations. On the whole, question four was the best answered, although there were still a
surprising number of candidates uncomfortable with the area of activity based costing. In every question, the
candidate had the opportunity to earn some easy marks quickly, and well prepared candidates attempted these
parts first.
June 2010
Question in this Kit
1 Activity based costing: pricing strategies; marginal costing 5
2 Variance analysis: materials; labour; sales *
3 Linear programming: optimal mix; shadow prices; optimal production plan 23
4 Transfer pricing: calculation of prices; discussion of pricing policy 90
5 Performance measurement: calculation; discussion of targets; budget manipulation 95

* Question not included in this Kit as not examinable under the 2013 F5 syllabus.
Examiner's comments. This paper consisted of five compulsory 20 mark questions.
The mix of narrative to numerical requirements was 47% to 53%. Most candidates attempted all questions and
there was no evidence that the paper was found to be particularly time pressured.

Revising F5
xix

December 2009
Question in this Kit
1 Variance analysis: material price and usage; planning and operational; performance
assessment
69
2 Target costing: calculation with learning curve; closing a cost gap 59
3 Forecasting: calculation; incremental budgeting *
4 Performance measurement: financial performance; quality of service 100
5 Short-term decision making: incremental costs and benefits calculation; pricing
strategies; outsourcing
37

* Question not included in this Kit as not examinable under the 2013 F5 syllabus.
Examiner's comments. Under the recently introduced format, the paper consisted of five compulsory 20 mark
questions.
Most candidates attempted all questions and there was no evidence that the paper was found to be particularly time
pressured.
June 2009
Question in this Kit
1 Throughput accounting: bottleneck identification; calculation of TPAR; discussion 16
2 Performance management: financial performance; quality and resource utilisation 99
3 Variance analysis: bonus scheme; mix, yield and sales variances 68
4 Incremental costs and revenues; pricing 38
5 Budgeting: calculation; expected values; zero based 54
Examiner's comments. This was the first sitting with a change of rubric setting five questions of 20 marks each.
Layout was still an issue but standards of performance assessment are improving. More candidates have more idea
about what is expected when assessing the performance of a business.
December 2008
Question in this Kit
1 Performance measurement: ROI; manipulation of results; profit forecast 98

2 Risk: decision rules; expected values; profit table; other methods to analyse and
assess risk

46
3 Factors influencing pricing; learning curves 58
4 Lifecycle costing; budgeting; standard cost 52
Examiner's comments. There was little evidence of time management issues but layout of answers was again
mixed. Poor layout and untidiness is not acceptable. Standards of performance assessment improved slightly and
the signs were encouraging.
xx
Revising F5
June 2008
Question in this Kit
1 Variance analysis: comment on performance; calculation; marginal costing operating
statement

61
2 Linear programming: constraints; graph; optimal solution; shadow price 22
3 Performance measurement: financial performance indicators; forecasts; long-term
view v short-termism

97
4 Activity based costing: explanation; implementation; calculation 6
Examiner's comments. There was evidence of poor time management with some candidates spending too long on
the linear programming question and writing copious amounts unnecessarily in other questions.
Preparation for the performance management question has to revolve around principles and techniques and
students will have to be able to have original thoughts on the exam day. The scenarios will always be
straightforward but an interpretation will be needed.
Poor layout is not acceptable eg excessive crossing out, unlabelled workings, no tabulation.
Candidates continue to struggle in the written (discursive) elements of the paper. Practice in writing skills is needed

and an improvement in the techniques of commentary, assessment and the ability to answer the question set as
opposed to merely demonstrating knowledge.
December 2007
Question in this Kit
1 Target costing: explanation of process and benefits; cost gap identification and
explanation

10
2 Performance measurement: current and future performance; non-financial data 94
3 Budgeting and variances: budget revision discussion; sales variances 67
4 Further processing decision: factors to consider; evaluation; outsourcing 36
Examiner's comments. There was no evidence of time pressure with most candidates completing the paper.
Many of those that failed did not have knowledge of target costing, did not understand budget revisions and could
not interpret simple financial data.
The layout of questions was mixed, with the weaker candidates producing messy and poorly laid out work.
Pilot paper
Question in this Kit
1 Activity based costing: calculation; ABC v absorption costing; implications of a
switch to ABC
2 Mix and yield variances: explanation; evaluation of performance; performance
management system; calculation
3 Learning curve: calculations; improvements to cash flow
4 Performance measurement: financial performance; non-financial information;
balanced scorecard

4

66

57

93


Revising F5
xxi

Analysis of past papers
Covered
in Text
chapter


Dec
2012

June
2012

Dec
2011


June
2011


Dec
2010

Pilot
Paper

SPECIALIST COST AND MANAGEMENT ACCOUNTING
TECHNIQUES

2a Activity based costing 5 5 4 1
2b Target costing 2
2c Life cycle costing 4
2d Throughput accounting 5
2e Environmental accounting

DECISION-MAKING TECHNIQUES


3 Cost volume profit (CVP) analysis 1
4
Multi-limiting factors and the use of linear programming and
shadow pricing
3
5 Pricing decisions 2
6 Make-or-buy and other short-term decisions 1 1
7 Dealing with risk and uncertainty in decision-making 1

BUDGETING

8 Objectives 3
9 Budgetary systems 4 5
9 Types of budget 3
10 Quantitative analysis in budgeting 3 4 2 3

8 Behavioural aspects of budgeting 4 3 3


STANDARD COSTING AND VARIANCE ANALYSIS


11 Budgeting and standard costing

12 Basic variances and operating statements 2 4 3 1 2
12 Material mix and yield variances 5 2
13 Planning and operational variances 2 1
13 Behavioural aspects of standard costing 4

PERFORMANCE MANAGEMENT SYSTEMS, MEASUREMENT
AND CONTROL

14 Performance management information systems
15
Sources of management information and management
reports

16 The scope of performance measurement 3 4 2 4
17 Divisional performance and transfer pricing 5 5 2 4

18
Performance analysis in not-for-profit organisations and the
public sector


xxii

Revising F5
Useful websites
The websites below provide additional sources of information of relevance to your studies for Performance
Management.
 www.accaglobal.com
ACCA's website. The students’ section of the website is invaluable for detailed information about the
qualification, past issues of Student Accountant (including technical articles) and interviews with examiners.
 www.bpp.com
Our website provides information about BPP products and services, with a link to the ACCA website.
 www.ft.com
This website provides information about current international business. You can search for information and
articles on specific industry groups as well as individual companies.
 www.economist.com
Here you can search for business information on a week-by-week basis, search articles by business subject
and use the resources of the Economist Intelligence Unit to research sectors, companies or countries.
 www.bbc.co.uk
The website of the BBC carries general business information as well as programme-related content.

Planning your question practice
xxiii

Planning your question practice
We have already stressed that question practice should be right at the centre of your revision. Whilst you will spend
some time looking at your notes and Paper F5 Passcards, you should spend the majority of your revision time
practising questions.
We recommend two ways in which you can practise questions.
 Use BPP's Learning Media's question plan to work systematically through the syllabus and attempt key and
other questions on a section-by-section basis
 Build your own exams – attempt questions as a series of practice exams
These ways are suggestions and simply following them is no guarantee of success. You or your college may prefer

an alternative but equally valid approach.

BPP Learning Media’s question plan
The BPP plan below requires you to devote a minimum of 30 hours to revision of Paper F5. Any time you can spend
over and above this should only increase your chances of success.
Step 1
Review your notes and the chapter summaries in the Paper F5 Passcards for each section of the
syllabus.
Step 2
Answer the key questions for that section. These questions have boxes round the question number
in the table below and you should answer them in full. Even if you are short of time you must attempt
these questions if you want to pass the exam. You should complete your answers without referring to
our solutions.
Step 3
Attempt the other questions in that section. For some questions we have suggested that you prepare
answer plans or do the calculations rather than full solutions. Planning an answer means that you
should spend about 40% of the time allowance for the questions brainstorming the question and
drawing up a list of points to be included in the answer.
Step 4
Attempt Mock exams 1, 2 and 3 under strict exam conditions.

xxiv
Planning your question practice
Syllabus section
2012
Passcards
chapters
Questions
in this Kit
Comments

Done

Revision period 1
Specialist cost and
management
accounting
techniques

Absorption and
marginal costing
1
1

Answer this question in full as it provides good revision
of absorption and marginal costing.

Activity based
costing
1, 2, 5

5

This June 2010 question tests ABC, absorption costing
and pricing strategies. Answer in full.

2

7

Answer this December 2010 question in full.

Target costing 2

9

This June 2012 question tests target costing in a service
sector context. Answer in full.

Lifecycle costing 2 & 10

12

This December 2011 question tests lifecycle costing and
learning curves. Answer in full.

Throughput
accounting
2

15

Answer this question in full as it revises limiting factor
and contribution calculations as well as asking you to
explain some elements of environmental accounting.

2

17

Answer this June 2011 question in full.

Environmental
accounting
2, 5

27

Part (c) of this question tests your knowledge of
management accounting techniques that can be used to
account for environmental costs. Answer in full.

Revision period 2
Decision-making
techniques

Cost volume profit
(CVP) analysis
3

18

This is a good test of the main elements of CVP
analysis. Answer in full.

Linear
programming
4

24

Answer this December 2010 question in full as it gives
you valuable practice at all aspects of linear
programming.

Pricing 5

29

Answer this June 2011 question in full as it has some
testing calculations and makes you think about the
practical aspects of pricing strategies.

Short-term
decisions
6

30

This December 2011 question is a good test of relevant
costing principles. Answer in full.

6

37

Answer this December 2009 question on shutdown
decisions in full.

Risk and
uncertainty

7

42

This June 2011 question tests your knowledge of
decision rules and pay-off tables. Answer in full.

7

44

This is a good test of your ability to prepare a decision
tree. Answer in full.