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Interactive World Wide Ltd, December 2011 To develop knowledge and skills in the application of management accounting techniques to quantitative and qualitative information for planning, decisionmaking, performance evaluation and control.
E-Book Content
ACCA Paper F5
Performance Management Class Notes June 2012
© Interactive World Wide Ltd, December 2011 All 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 Interactive World Wide Ltd. 2
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Contents PAGE INTRODUCTION TO THE PAPER
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FORMULAE PROVIDED IN THE EXAMINATION PAPER
7
CHAPTER 1:
COST ACCOUNTING AND NEW DEVELOPMENTS
9
CHAPTER 2:
DECISION MAKING AND LINEAR PROGRAMMING
31
CHAPTER 3:
PRICING
57
CHAPTER 4:
DECISION MAKING UNDER UNCERTAINTY
71
CHAPTER 5:
BUDGETING TYPES
85
CHAPTER 6:
BUDGETARY CONTROL
95
CHAPTER 7:
QUANTITATIVE AIDS TO BUDGETING
107
CHAPTER 8:
STANDARD COSTING AND VARIANCE ANALYSIS
125
CHAPTER 9:
ADVANCED VARIANCE ANALYSIS
141
CHAPTER 10: PERFORMANCE EVALUATION
155
CHAPTER 11: TRANSFER PRICING
175
SOLUTIONS TO EXERCISES AND EXAMPLES
183
ACCA STUDY GUIDE AND INDEX
235
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Introduction to the paper
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IN TR O DUC T IO N T O T H E PA P ER
AIM OF THE PAPER To develop knowledge and skills in the application of management accounting techniques to quantitative and qualitative information for planning, decisionmaking, performance evaluation and control.
OUTLINE OF THE SYLLABUS 1.
Cost accounting techniques.
2.
Decision-making techniques including risk and uncertainty.
3.
Budgeting techniques and methods.
4.
Standard costing systems.
5.
Performance appraisal including financial and non-financial measures.
FORMAT OF THE EXAM PAPER The syllabus is assessed by a three hour paper-based examination. The examination consists of 5 questions of 20 marks each. compulsory.
All questions are
FAQs What is the skills set that a student must bring to the paper? As a student approaching this paper the basic requirement is an ability to understand and compute the differing techniques and methods in the syllabus. In addition there is a need to understand the scenario and critically be able to write in relation to the scenario and whatever the numbers you have already calculated.
What impact will there be of having a new examiner on this paper? Ann Irons is the new examiner of paper F5. There should be little or no impact of having a new examiner on the well prepared student. The style and content of the questions will change to some degree but the new examiner is given the same remit as the previous examiner.
What is an average mix of discursive and numerical elements in the exam? There is no strict guideline as to how many marks would be allocated to discursive parts and number crunching questions. However, on average around 35% - 40% is general average covering discussions based on scenarios provided in the questions, and some on general concepts.
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Formulae provided in the examination paper
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F OR MU LA E & T A