ACCA | BPP - P5 Advanced Performance Management Exam Tips December 2010

BPP | ACCA - P5 Advanced Performance Management Exam Tips for December 2010
  • Strategic management accounting: This is a key theme of this paper. Numerical questions could include analysing risk using expected values and probabilities; benchmarking and discussion of critical success factors are likely to be key discussion areas.
  • Budgeting: Financial data has appeared repeatedly in past exams. You may be asked to draw up an income statement or budget or to compare actual performance against a benchmark. This could include the use of activity-based approaches, learning curves or non-financial indicators; although the new examiner has indicated that his questions will require more skill in interpreting data and discussing strategies to improve performance rather than performing calculations.
  • ‘Beyond budgeting’ is an important area that can be tested either as a discussion or a numerical question.
  • Strategic performance measures in the private sector: Divisional performance measurement is another key area; ROI, RI , EVA, NPV or even ABC could feature here and transfer pricing could feature as an aspect of these questions.
  • Alternative views of performance measurement: Questions are commonly set that require a good understanding of the balanced scorecard, the building blocks model and the performance pyramid. Questions will often require you to analyse data that has been collected using one of these models.
  • Performance hierarchy: Linking strategic decisions to mission statements or suggesting strategic options using models such as Ansoff’s matrix or the BCG matrix lend themselves to questions containing a mixture of financial and discursive elements that could easily include a simple NPV or profit analysis.