Tài liệu ACCA mới nhất từ BPP môn P5,

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PAPER P5
ADVANCED PERFORMANCE
MANAGEMENT
BPP Learning Media is the sole ACCA Platinum Approved Learning Provider – content
for the ACCA qualification. In this, the only Paper P5 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 new Pilot Paper
Our Passcard and i-Pass products also support this paper.
FOR EXAMS UP TO JUNE 2014
ii


First edition 2007
Seventh edition January 2013
ISBN 9781 4453 6655 5
(previous ISBN 9780 4453 8004 9)

e-ISBN 9781 4453 6958 7
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

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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 x
Helping you with your revision – the ONLY P5 Practice and
Revision Kit to be reviewed by the examiner
!

xii

Revising P5
Topics to revise & question practice xiii
Passing the P5 exam xiv
Exam formulae xviii
Exam information xx
Analysis of past papers xxiv
Useful websites xxv
Planning your question practice
BPP Learning Media's question plan xxvi
Build your own exams xxxv
Questions and answers
Questions 3
Answers 125
Exam practice
Mock exam 1
 Questions 457
 Plan of attack 465
 Answers 467
Mock exam 2
 Questions 485
 Plan of attack 497
 Answers 500
Mock exam 3 (Pilot Paper)

 Questions 523
 Plan of attack 531
 Answers 533
ACCA examiner's answers
 Pilot paper 555

Review form
iv

Finding questions

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Using your BPP Learning Media products
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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. Where necessary, questions have been amended to reflect the new format of the exam, from June
2013.
Questions set under the old syllabus Performance Management paper are included because their style and content
are similar to those which appear in the P5 exam. They have 'PM' after the question name. These questions have
been amended to reflect the current exam format. Questions taken from the P3 Business Analysis syllabus (when a
re-alignment of syllabuses took place in 2010) are denoted by ‘BA' after the question name.
Exam questions set under the current syllabus are designated 'APM' after the question name.

Time Page number


Marks
allocation
(Mins)

Question

Answer
Part A: Strategic planning and control


1 Diverse holdings (PM 12/05, amended)
25 45 3 125
2 ST University
25 45 4 127
3 HEG (APM 12/07, amended)
25 45 5 131
4 CTC (APM 6/08, Preparation question)
20 36 6 134
5 AB Electronics
25 45 7 137
6 Megasnack
25 45 8 139
7 Ganymede (APM 6/12, amended)
25 45 9 142
8 Budgeting (Preparation question)
20 36 10 147
9 Business process re-engineering
25 45 10 149
10 GMB Co (APM 12/07, amended)
25 45 11 151
11 Sports Shop
25 45 12 155
12 Scott

25 45 12 157
13 MKO clothing
25 45 13 160
14 BV Entertainments
25 45 14 162
15 EEE Chemical company
25 45 14 164
16 GSC groceries
25 45 15 166

Part B: External influences on organisational
performance



17 GTR panels 25 45
17 169
18 GHG (APM 6/08, amended) 25 45
18 171
19 F4U (APM 6/09) 25 45
18 173
20 CAP (APM 12/09, amended) 25 45
19 176
21 EMA (APM 6/10) 25 45
21 180
22 FGH Telecom (APM 12/10, amended) 25 45
22 181
23 SQR Sports racquets 25 45
23 185

vi

Finding questions

Time Page number


Marks
allocation
(Mins)

Question

Answer
Part C: Performance measurement systems and
design



24 Handra
25 45 25 188
25 FDS irrigation systems
25 45 26 190
26 TREN engine components
25 45 27 193
27 KLP divisions
25 45 27 195
28 Racer deliveries
25 45 28 197
29 Auto Parts

25 45 29 199
30 CMA Supermarkets
25 45 30 202
31 Viga Drinks (Preparation question)
20 36 31 204
32 Beachy
25 45 31 206
33 Cobra Golf Club (Preparation question)
20 36 32 208
34 Bluefin School (APM 12/11, amended)
25 45 34 210

Part D: Strategic performance measurement



35 CFD (APM 12/09, amended)
25 45 36 213
36 ZTC Communications
25 45 36 216
37 Large conglomerate (Preparation question)
20 36 37 219
38 CSG (PM 6/07, amended)
25 36 38 222
39 SEC
25 45 38 225
40 CD
25 45 40 228
41 Alpha Division (APM 12/07)
25 45 41 230

42 BAG (APM 12/08, Preparation question)
20 36 43 234
43 SSA (APM 12/09, amended)
25 45 44 236
44 Seatown
25 45 45 240
45 LGHD (APM 6/10, amended)
25 45 46 243
46 CFE coffee shops
25 45 46 245
47 JIT systems (Preparation question)
20 36 47 247
48 Tench (APM 12/11, amended)
25 45 48 250
49 TAW (APM 6/08, amended)
25 45 49 253
50 Thebe (APM 6/12, amended)
25 45 50 255
51 T4UC (APM 6/09, amended)
25 45 51 259
52 SSH (APM 12/08)
25 45 52 262
53 KPG Systems
25 45 53 265
54 Universal Pottery Company (BA 12/07)
25 45 54 267
55 CCT Computer Systems (Preparation question)
12 22 55 272
56 Astrodome (PM 12/05, amended)
25 45 55 273

57 TRG (APM 6/08, amended)
25 45 57 274
58 UU (APM 6/09, amended)
25 45 58 277


Finding questions

vii
Time Page number


Marks
allocation
(Mins)

Question

Answer
59 Elegant Hotels (BA 6/09)
25 45 59 279
60 Connie Head
25 45 60 282
61 Equiguard (BA, 12/08)
25 45 60 284

Part E: Performance evaluation and corporate
failure

62 YCT yachts
25 45 62 287
63 Bettaserve (APM Pilot paper)
25 45 63 290
64 Cod (APM 12/11)
25 45 64 292
65 APX Accountancy (APM 6/11, amended)
25 45 66 296
66 Eatwell Restaurant (PM 6/02, amended)
25 45 67 299
67 Amal (APM 6/12, amended)
25 45 67 302
68 B2B Deliveries
25 45 68 306
69 Glitter Fashions
25 45 69 309
70 TOC (APM 12/08, Preparation question)
20 36 70 311
71 SFS (APM 6/10, amended)
25 45 71 313
72 LOL cards (APM 12/10, amended)
25 45 72 315
73 BEG (APM 6/10, amended)
25 45 73 318
74 ENT Entertainments (APM 6/11, amended)
25 45 74 321
75 Vision (PM 12/06, amended)
25 45 75 324
76 TMC (APM 12/08, amended)

25 45 76 328
77 Joint venture
25 45 77 330
78 Callisto (APM 6/12, amended)
25 45 78 332
79 CHN Retail chain
25 45 79 336
80 BPC (APM 12/07, amended)
25 45 80 338
81 RM Batteries (APM 12/10, amended)
25 45 81 340
82 NW Clothes
25 45 83 343
83 Action Buttons
25 45 84 345

viii

Finding questions


Time Page number


Marks
allocation
(Mins)

Question

Answer
Part F: Current developments and emerging issues
in performance management



84 Environmental management accounting (Preparation question)
20 36 85 348
85 Management accounting relevance (Preparation question)
20 36 85 349
86 School League Tables
25 45 85 352
87 BPL Leisure
25 45 87 354
88 Mentons
25 45 88 357

Section A Questions



89 Cognet 50 90 89 361
90 Armstrong Stores (Sample question, amended) 50 90 90 365
91 Robust Laptops (APM 12/10, amended) 50 90 93 371
92 RRR (APM 12/09, amended) 50 90 95 376
93 BWY houses 50 90 97 380
94 Film Productions Co (APM 12/10, amended) 50 90 99 387
95 Metis (APM 6/12, amended) 50 90 100 391
96 GWCC (PM 6/06, amended) 50 90 103 400
97 JHK Coffee Machines (APM 6/11, amended) 50 90 104 405

98 TSC (APM 12/08, amended) 50 90 106 411
99 BEC (APM 12/09, amended) 50 90 108 417
100 HFG (APM 6/08, amended) 50 90 111 423
101 SBC (APM 6/10, amended) 50 90 113 430
102 Glasburgh (APM 6/09, amended) 50 90 116 435
103 AAA Management Consultancy 50 90 117 443
104 Zed Leisure 50 90 119 446




Finding questions

ix
Mock exam 1
Questions 105 to 108
Mock exam 2
Questions 109 to 112
Mock exam 3 (Pilot paper)
Questions 113 to 116
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 along with a small number of additional questions will be available for free after the
exams on

x

Finding questions

Topic index
Listed below are the key Paper P5 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

Accountability and responsibility accounting 27, 58, Mock 3 Qn 2
Activity based budgeting 8, 71, 89
Activity based costing 10, 70, 91
Activity based management 70, 71
Ansoff's growth vector matrix
Appraisals and performance management
75, 76, 90
60
Balanced scorecard 62, 69, 90, 101-103, Mock 3 Qn 3
Behavioural aspects of budgeting 57
Benchmarking 7, 89, 90, 97, 100
Beyond budgeting 8, 91, 92
BCG matrix 74, 93
Branding 46
Budgeting and types of budget 8, 91, 92, Mock 2 Qn 2
Building blocks model (Fitzgerald and Moon) 65, 66, 98
Business process re-engineering 9
Business structure 78

Controls and security over information 31, 32, 34
Corporate failure 80, 81, 82, 104

Costs of quality 42, 48, 49, 96
Critical success factors 3, 35, 36, 91, 94
Cultural differences 18
Dimensions of performance
Divisional performance measures
66
97

Environmental factors and impact on performance 18, 20, 22, 23, 36, 93, Mock 1 Qn 3
Environmental management accounting 84, Mock 3 Qn 4
Enterprise resource planning systems (ERPS) 3, 13
EVA (Economic value added) 41, 72, 100, Mock 2 Qn 3, Mock 2 Qn 1
External environment 18, 23, 36, 93
Financial performance 37-41, 52, 95-100, 104, Mock 1 Qn 3
Freewheeling opportunism Mock 1 Q1
Gap analysis 75, 76, 90, Mock 1 Qn 1
Global factors 18
Goal congruence 6
Governments, regulation and business performance 17, 76, Mock 2 Qn 3
Information for decision making
Information overload
Information systems and IT systems
2, 5, 24, 25, Mock 1 Qn 2, Mock 1 Qn 4
33, 34, Mock 2 Qn 1
9, 12, 14, 30, Mock 1 Qn 2, Mock 3 Qn 1
JIT
Joint ventures
47, 48
77

Finding questions

xi
Syllabus topic Question numbers

Kaizen costing
Key performance indicators
League tables
Lean information systems
48, 49, 71
35, 64, 91, 94
7, 86, 98
26, 32
Management accounting and information systems 12, 14, 24, 25, 85, Mock 1 Qn 2, Mock 3 Qn 1
Mission statements 35, 94
Net present value 4,19, 37
Non-financial performance indicators 35, 38, 50(a) 89, 101
Objectives 38
Operational planning Mock 1 Qn 2
Performance management in complex business
structures
77, 78
Performance management information systems 24, 26, 27, 29, 97
Performance prism 67, 68, 69
Performance pyramid 63, 64, 73, Mock 2 Qn 4
Porter's Five forces 80, 103
Problems of performance measurement 56, 57
Public sector organisations 44, 45
Qualitative information

Quality
28
42, 50, 53-55
Residual income 37, 41, 100, Mock 1 Qn 3
Responsibility and controllability 27, Mock 3 Qn 2
Reward schemes 59, 60, 61, 92, 99, 100, 101, Mock 2 Qn 1
Risk and uncertainty 5, 17, 19, 21, 40, 93, Mock 3 Qn 1
Role of management accountants 85, 87, 88, 98
Service organisations 14, 65, 66
Short and long-term decision making 41, 95
Six Sigma
Social obligations
50, 51, 54, 59
22, 46
Stakeholders 15, 16, Mock 2 Qn 3, Mock 3 Qn 1
Strategic management accounting 5, 13, 18, 89, 90
Strategic decision making 4, 20
Strategic planning
Supply chain management
2, 89, Mock 1 Qn 1
79
Survival vs growth 38, 62, 90
SWOT analysis 1
Target costing 71, 96
Total quality management (TQM) 48
Transfer pricing 42, 43, 97, 100
Value based management
Value chain
Value for money
72

11
45




xii

Helping you with your revision

Helping you with your revision – the ONLY P5 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
You can significantly improve your chances of passing by tackling revision and the exam in the right ways. Our
advice is based on feedback from ACCA examiners.
 We look at the dos and don'ts of revising for, and taking, ACCA exams
 We focus on Paper P5; 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 included for certain questions 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 some 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
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 new Pilot paper which ACCA has issued for 2013 exams.


Revising P5

xiii
Revising P5
Topics to revise
Any part of the syllabus could be tested in the compulsory Section A question. Therefore it is essential to learn the
entire syllabus to maximise your changes of passing. There are no short cuts – trying to spot topics is dangerous
and will significantly reduce the likelihood of success. As this is an advanced paper it also assumes knowledge of
topics covered in Paper F5 – Performance Management.
That said, the main capabilities in the syllabus (which is on ACCA’s website) take you through what the examiner

expects from you when you have completed your studies. There are six key areas for you to concentrate on. These
six areas are the syllabus areas covered in the Study Text.
However, whilst it is important that you work through your way through the Study Text and cover all the different
syllabus areas, it is also important to try and think how the areas might relate to each other, and how they could be
used to help managers in a business control and improve the performance of a business. Remember, this paper is
about performance management, and not simply about performance measurement.
Remember to come out of the detail once you have finished a chapter and practised some questions. Take some
time to reflect on how the chapter has covered the syllabus and how it feeds back into the capabilities which you
will need to display in order to pass this paper.
Question practice
You should use the Passcards and any brief notes you have to revise the syllabus, but you mustn't spend all your
revision time passively reading. Question practice is vital; doing as many questions as you can in full will help
develop your ability to analyse scenarios and produce relevant discussion and recommendations. The question plan
on page xxviii tells you what questions cover so that you can choose questions covering a variety of syllabus areas.
Make sure you leave enough time in your revision schedule to practise 50 mark Section A questions, as the Section
A question is compulsory in the exam. The scenarios and requirements of Section A questions are more extensive
than Section B questions and will integrate several parts of the syllabus, therefore practice is essential. Also ensure
that you attempt all three mock exams under exam conditions.

xiv

Revising P5

Passing the P5 exam
Displaying the right qualities
The examiner, Alex Watt, wrote an article in Student Accountant in August 2010 where he outlined the qualities he
expects students to display. He based his advice on the six main syllabus areas (A to F) and what qualities students
should demonstrate under each. We reproduce the main points here.
1. The application of strategic planning and control models in performance management. The models stress the
need to take an all-encompassing view of the factors that affect a business and to consider them when giving

strategic advice on performance. Good candidates at Paper P5 often distinguish themselves by being able to
synthesise disparate detailed points into an overall, strategic approach for an organisation.
2. Factors external to the business. Here candidates need to move beyond the internal factors associated with
traditional management accounting to consider the information needs of the strategic level of management as well
as the operational and tactical levels.
3. The information that management require and the systems that are needed for its delivery. Candidates are
expected to be aware of the effect of information technologies on performance management decision making rather
than the detail of these technologies. They should be conversant with the broad hardware and software trends and
issues and how these interact with the provision of performance information throughout the organization.
4 and 5. The fourth capability is the application of the techniques and assumed knowledge to specific scenarios.
You shouldn’t simply discuss theories and models in general terms; you need to apply them specifically to the
scenario identified in the question. The fifth capability is being able to take this information and turn it into advice
which is commercially valuable for strategic decision makers. This capability also requires the candidate to be
able to recognise and advise on situations where the organisation is in danger of failing.
6. Finally, candidates are expected to be aware of new knowledge from the general technical press. The
examiner stresses that articles in Student Accountant may be sources of topics for the exam, although as the
syllabus is not regularly updated older articles may also remain relevant.
There will be a small number of Professional marks available in the compulsory 50 mark Section A question, and it
should be possible for a well-prepared student to score most of these. For example, the effective use of appropriate
introductions and conclusions, and helpfully breaking the document into properly headed sub-sections, will help to
demonstrate a professional approach to writing a report. However, it should be stressed that the approach taken
will vary from question to question and the exam tests the candidates’ ability to apply their knowledge of
professional presentation. In order to score full professional marks, the answer will have to be tailored to the
specifics of the scenario in the question recognising the needs of the readers of the document.
Presentation points. First: on rounding. At this final level the candidate should use their own judgment on how to
round figures – the basic rule is that there should be enough detail to make a useful conclusion without obscuring it
with insignificant figures.
Second, short paragraphs are usually clear but single sentence paragraphs are often insufficient and unable to get
to the depth required at Paper P5. Bullet points are useful for lists but not if commentary is required. Finally,
reading model solutions is not a substitute for actually writing out your own answers.

Summarising the advice the examiner gives:
Candidates should:
 Understand the objectives of the exam as explained in the Syllabus and prepare the detailed topics in the
Study Guide
 Be very comfortable with the areas tested in Paper F5 Performance Management and Paper P3 Business
Analysis
 Ensure that their preparation for the exam has been based on a programme of study set for the required
syllabus and exam structure


Revising P5

xv

 Use an ACCA-approved textbook for Paper P5. They are structured around the syllabus and the examiner
reviews them so that they give an effective coverage of what is examinable
 Practise questions under exam conditions in order to improve speed and presentation skills, ensuring these
test discursive, computational and analytic abilities
 Study all the relevant articles that appear in Student Accountant
 Be able to clearly communicate understanding and application of knowledge in the context of a Professional
level exam.
The questions tend to be wide-ranging, as the examiner wants to link topics and mix ideas up. So you are better
knowing something about every part of the syllabus than a lot of detail about a few areas only.
Avoiding weaknesses
Our experience of, and examiner feedback from, other higher level exams enables us to predict a number of
weaknesses that are likely to occur in many students’ answers. You will enhance your chances significantly if you ensure
you avoid these mistakes:
 Failing to provide what the question verbs require (discussion, evaluation, recommendation) or to write
about the topics specified in the question requirements
 Repeating the same material in different parts of answers

 Stating theories and concepts rather than applying them
 Quoting chunks of detail from the question that don't add any value
 Failing to make the most of the information given in the question. Remember, you need to apply your
knowledge specifically to the scenario given in the question.
 Failing to set out workings clearly and separately
 Not planning and preparing the answer properly, taking into account mark allocation. Students often leave
part-questions out.
 Not refreshing brought-forward knowledge (for example, from Paper F5).
Use of reading time
ACCA permits a 15-minute reading time in addition to the 3 hour time given to sit this paper.
We recommend that you spend the first part of the 15 minutes reading time choosing the Section B questions you
will do, on the basis of your knowledge of the syllabus areas being tested and whether you can fulfil all the question
requirements. Remember that Section B questions can cover different parts of the syllabus, and you should be
happy with all the areas that the questions you choose cover. We suggest that you should note on the paper any
ideas that come to you about these questions.
However don't spend all the reading time going through and analysing the Section B question requirements in
detail; leave that until the three hours’ writing time. Instead you should be looking to spend as much of the reading
time as possible looking at the Section A scenario, as this will be longer and more complex than the Section B
scenarios and cover more of the syllabus. You should highlight and annotate the key points of the scenario on the
question paper.
Choosing which questions to answer first
Spending most of your reading time on the Section A scenario will mean that you can get underway with planning
and writing your answer to the Section A question as soon as the three hours start. It will give you more actual
writing time during the one and a half hours you should allocate to it, and it is writing time that you'll need.
xvi

Revising P5

Comments from examiners of other syllabuses that have similar exam formats suggest that students appear less
time-pressured if they do the big compulsory question first.

During the second half of the exam, you can put Section A aside and concentrate on the two Section B questions
you’ve chosen.
However, our recommendations are not inflexible. If you really think the Section A question looks a lot harder than
the Section B questions you’ve chosen, then do one of those first, but DON'T run over time on it. You must have an
hour and a half to tackle the Section A question and you will feel under much more pressure on it if you leave it till
last. If you do one of the Section B questions first, and then tackle the Section A question having had initial
thoughts on it during the reading time, you should be able to generate more ideas and find the Section A question is
not as bad as it looks.
Remember also that small overruns of time during the first half of the exam can add up to you being very short of
time towards the end.
Tackling questions
You'll improve your chances by following a step-by-step approach along the following lines.
Step 1
Read the background

Usually the first couple of paragraphs will give some background on the company and what it is
aiming to achieve. By reading this carefully you will be better equipped to relate your answers to the
company as much as possible.
Step 2
Read the requirements
There is no point reading the detailed information in the question until you know what it is going to
be used for. Don’t panic if some of the requirements look challenging – identify the elements you are
able to do and look for links between requirements, as well as possible indications of the syllabus
areas the question is covering.
Step 3
Highlight the action verbs that are used in each requirement

These convey the level of skill you need to exhibit and also the structure your answer should have. A
lower level verb such as define will require a more descriptive answer; a higher level verb such as
evaluate will require a more applied, critical answer.

The examiner has stressed that higher level requirements and verbs will be most significant in this
paper, for example critically evaluating a statement and arguing for or against a given idea or
position. Action verbs that are likely to be frequently used in this exam are listed below, together with
their intellectual levels and guidance on their meaning.
Level
1
Define
Give the meaning of
1
Explain
Make clear
1
Identify
Recognise or select
1
Describe
Give the key features
3
Assess
Determine the strengths/weaknesses/importance/
significance/ability to contribute
3
Discuss
Examine in detail by using arguments for and against
3
Recommend
Advise the appropriate actions to pursue in terms the
recipient will understand
3
Evaluate

Determine the value of, in the light of the arguments for and
against


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Step 4
Identify what each part of the question requires
Think about what frameworks of theories you could choose to support your answer (if the question
doesn’t indicate a specific one you need to use).
Look at how the different parts of a question fit together, and make sure you don’t end up repeating
the same points in more than one part of the question.

Step 4
Check the mark allocation to each part
This shows you the depth anticipated and helps allocate time.

Step 5
Read the question slowly, focusing on the initial requirements

Once you know what you are expected to do in the first requirement, read the question in detail,
trying to focus on the information that will be needed for your first task.
Step 6
Read the scenario carefully
Put points under headings related to requirements (eg by noting in the margin to what part of the
question the scenario detail relates).
Step 7

Consider the consequences of the points you’ve identified
You will often have to provide recommendations based on the information you've been given. Be
prepared to criticize the framework or model that you’ve been told to use, if required. You may have
also to bring in wider issues or viewpoints, for example the views of different stakeholders.
Step 8
Write a brief plan
You may be able to do this on the question paper as often there will be at least one blank page in the
question booklet. However any plan you make should be reproduced in the answer booklet when
writing time begins. Make sure you identify all the requirements of the question in your plan – each
requirement may have sub-requirements that must also be addressed. If there are professional
marks available, highlight in your plan where these may be gained; for example, preparing a report.
Step 9
Write the answer
Make every effort to present your answer clearly. The pilot paper and exam papers so far indicate that
the examiner will be looking for you to make a number of clear points. The best way to demonstrate
what you’re doing is to put points into separate paragraphs with clear headers.
Discussion questions
Do not be tempted to write all you know about a particular topic in a discussion question. Markers can easily spot
when a student is ‘waffling’ and you will receive little or no credit for this approach. Keep referring back to the
question requirement to ensure you are not straying from the point.
To make it easier for the marker to determine the relevance of the points you are making, you could explain what
you mean in one sentence and then why this point is relevant in another.
Remember that depth of discussion will be important. Always bear in mind how many marks are available for the
discussion as this will give you an indication of the depth that is required. Ask yourself the following questions as
you are tackling a discussion question:
 Have I made a point in a coherent sentence?
 Have I explained the point (to answer the ‘so what’ or ‘why’ queries)?
 Have I related the point to the company in the scenario?
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Exam formulae




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xix



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Exam information
The exam paper
Format of the paper
The format of the P5 exam has changed, with effect from June 2013. The new format is:

Number of


marks

Section A:

1 compulsory case study

50

Section B:

Choice of 2 from 3 questions (25 marks each)

50


100

Time: 3 hours plus 15 minutes reading time
Please note: Although the format of the exams has changed from June 2013, the underlying syllabus content and
the way in which subjects are examined has not changed. The changes only relate to the number of questions in
the exam, and the mark allocations for each question.
Section A will be a compulsory case study question, typically with four or five sub-requirements relating to the
same scenario information. The question will usually assess and link a range of subject areas from across the
syllabus. It will require students to demonstrate high-level capabilities to understand the complexities of the case,
and evaluate, relate and apply the information in the case study to the requirements.
Professional marks will be available in Section A for presentation, logical flow of argument and quality of argument.
Section B questions are more likely to assess a range of discrete subject areas from the main syllabus section
headings; they may require evaluation and synthesis of information contained within short scenarios and
application of this information to the question requirements.
Although one subject area is likely to be emphasised in each Section B question, students should not assume that
questions will be solely about content from that area. Each question will be based on a short case scenario to
contextualise the question.
The pass mark for Paper P5 remains at 50%.
Additional information
The Study Guide provides more detailed guidance on the syllabus.

Exams prior to 2013
Questions and answers for exams prior to 2013 are available on ACCA’s website:
/>p51.html
Please note, these questions reflect of the format of the exam prior to 2013. In the main body of this Kit, where we
have used past exam questions, we have adapted them to fit the format of the exam from June 2013.


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Examiner’s comments
The following comments have been extracted from the reports the Examiner has written on past exams. They
illustrate common weaknesses in candidates’ answers, and therefore highlight areas you should consider in your
preparation for the exam, in order to avoid making the mistakes the Examiner has commented on.
June 2012
As has been noted in previous sittings, candidates still need to appreciate that performance management is an area
which, at an advanced level, is dependent on situation and environment. Therefore a good answer will go beyond
the mere repetition of how a technique or model works, and will relate it to an entity’s specific environment. Equally,
good answers will evaluate how useful a technique is for a given scenario, rather than simply describing that
technique.
The quality of the numerical workings and the commentary on the results of these workings remains an area of
concern. For example, when rounding numbers, 229.6 rounds to 230 not 229. An accountant is expected to be an
expert on numerical issues in a business situation, but this sort of carelessness can dent that reputation. When
commenting on numerical work, there were numerous examples of scripts that did little more than put into
sentences the numbers which had been calculated. For example, simply stating that one company has a higher
profit margin than another, does not add any value, and so such a comment will gain no marks.
Also, as in previous sittings, candidates do not appear to be spending sufficient time reading the question and
understanding its requirements. For example, if you are asked to evaluate a company’s performance report, that is
not the same thing as being asked to evaluate a company’s performance.

December 2011
In general, it was encouraging to see candidates making use of the detail use of the detail provided in the scenario.
The basis of this examination is analysis and application. Candidates need to appreciate that performance
management is an area which, at an advanced level, is dependent on situation and environment. Therefore a good
answer will go beyond the mere repetition of how a technique or model works, and will relate it to an entity’s
specific environment.
Some candidates are still not spending sufficient time reading the questions and understanding their requirements.
Questions must not be ‘skim’ read. There were numerous examples of answers which related to a different question
requirement than the one which had actually be set, and therefore only scored very few marks. For example, one of
the questions asked for an evaluation of a company’s performance measurement system. It did not ask for an
evaluation of the company’s performance, although a number of candidates provided an evaluation of the
company’s performance. Similarly, one of the other questions asked about the suitability of the performance
information which was used to assess a shop manager’s performance. Again, the focus should have been on the
performance information, not the shop or the manager’s performance.
June 2011
It was encouraging to see some candidates applying good analytic reasoning, and making better use of the detail
provided in the question scenario. If candidates come into the P5 examination expecting to repeat memorised
material, they will probably only score between 20% and 30%.
The basis of this examination is analysis and application. Candidates will need to a foundation in the techniques and
models listed in the syllabus, but should focus more on the evaluation of these techniques and consideration of
their usefulness to given scenarios.
Performance management, at an advanced level like P5, is dependent on situation and context. A good answer will
go beyond simple description of how a technique works, and will focus on relating it to the specific scenario given
in the question.
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December 2010
A large number of candidates were either inadequately prepared for the examination or else they failed to read the

question requirements carefully.
Candidates need to be flexible in their approach to the examination. They cannot expect there to be one standard
answer to all questions on a given topic. The examination is intended to make candidates apply their knowledge to a
given scenario, and the scenario will always present new challenges or details.
In general, candidates appear better at description than analysis. However, candidates need to remember that the
P5 examination is intended to test their ability to ‘add value’ in their work – in other words, to identify the key points
in a scenario, and then apply their knowledge to them in order to address performance issues or performance
improvements as required by the question.
June 2010
A large number of candidates achieved high marks. However a large number of candidates were inadequately
prepared though overall performance has improved. Candidates demonstrate good descriptive skills but are weak
on analysis falling to include numerical analysis and the commercial implications of their findings. Candidates
should refer to any scenarios given in their answers rather than to prepared analyses which may be irrelevant.
December 2009
Many candidates continue to display their answers poorly, and would benefit from giving more thought to the
presentation of their answers. This will not only improve the organisation of their answers, but it will also assist the
marking in identifying the points which deserve marks.
Many candidates would clearly also benefit from planning their answers. For example, in their answers to question
5 a number of candidates discussed the organisation’s mission statement in part (a) (i), although this was actually a
requirement of part (a) (ii).
It was also noticeable that some candidates had clearly memorised solutions to past examination questions and
were determined to include them in their answers to the questions set here. Unfortunately this does not work, and
you must make your answers appropriate to the specific scenario being described in the question.
June 2009
Well-prepared candidates achieved comfortable passes. However many candidates failed quite badly and few were
marginal in their performance. Common errors included not answering all parts to questions and a tendency to
write at length without answering the question. Candidates must set out their answers clearly and label their scripts
to help markers. This is especially important as professional marks can be earned for presentation and
organisation.
December 2008

Scripts suggested a significant number of candidates were unprepared for the exam. Again, many omitted to
answer all parts of questions losing valuable marks. A major problem was insisting on using a memorised answer
to answer a question rather than the actual question set. There was an inability to interpret numbers and ratios
beyond classifying performance as either 'good' or 'bad'.


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June 2008
A significant number of candidates provided good answers to every question they attempted and consequently
earned high marks. However, the overall performance of candidates was good. Poor candidates revealed poor
presentation and/or time management or not observing the specific requirements of each question.
Candidates need to give more thought to the layout and organisation of their answers now that professional marks
are available for well-presented answers.
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Analysis of past papers
The table below provides details of when each element of the syllabus has been examined and whether it was
examined as part of a compulsory question (‘C’) or an optional one (‘O’). Please note that up to December 2012, the
exam contained two compulsory questions, unlike exams from 2013 which will only contain one compulsory
question.
Covered
in Text
chapter

Dec
2012
June
2012

Dec
2011
June
2011

Dec
2010
June
2010
Dec
2009
June
2009

STRATEGIC PLANNING AND CONTROL

1
Introduction to strategic management
accounting
O C
2
Performance management and control of the
organisation
C C C
3

Business structure, IT developments and
other environmental and ethical issues
C, C

EXTERNAL INFLUENCES ON
ORGANISATIONAL PERFORMANCE

4
Changing business environment and external
factors
C O C O C
5, 6
PERFORMANCE MEASUREMENT SYSTEMS
AND DESIGN
C O, O C

STRATEGIC PERFORMANCE MEASUREMENT

7 Performance hierarchy C O
8
Scope of strategic performance measures in
the private sector
C, O C C O C C,O
9
Divisional performance and transfer pricing
issues
C O,O O
10a
Scope of strategic performance measures in
not-for-profit organisations

C,O
10b Non-financial performance indicators O C
11
The role of quality in management
information and performance measurement
systems
O O
12
Performance measurement: strategy, reward
and behaviour
C O O,O O

PERFORMANCE EVALUATION AND
CORPORATE FAILURE

13
Alternative views of performance
measurement and management
C C C, O C,O O,O
14
Strategic performance issues in complex
business structures
O O
15 Predicting and preventing corporate failure O O

CURRENT DEVELOPMENTS AND EMERGING
ISSUES IN PERFORMANCE MANAGEMENT

16 Current developments, issues and trends O O