ACCA F5 - Performance Management Study Text 2016

ACCA APPROVED CONTENT PROVIDER

ACCA Approved

Study Text

Paper F5 Performance Management

Valid for both paper and

computer based exams

For exams in September 2016, December 2016, March 2017 and June 2017

ACCA APPROVED CONTENT PROVIDER

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S T U D Y

PAPER F5

T E

X

PERFORMANCE MANAGEMENT

T

BPP Learning Media is an ACCA Approved Content Provider. This means we work closely with ACCA to ensure this Study Text contains the information you need to pass your exam. In this Study Text which has been reviewed by the ACCA examination team we: Highlight the most important elements in the syllabus and the key skills you will need Signpost how each chapter links to the syllabus and the Study Guide Provide lots of exam focus points demonstrating what is expected of you in the exam Emphasise key points in regular fast forward summaries Test your knowledge in quick quizzes Examine your understanding in our practice question bank Reference all the important topics in our full index BPP's Practice & Revision Kit also supports this paper.

FOR EXAMS IN SEPTEMBER 2016, DECEMBER 2016, MARCH 2017 AND JUNE 2017

First edition 2007 Ninth edition February 2016

ISBN 9781 4727 4422 7 (Previous ISBN 9781 4727 2675 9) e-ISBN 9781 4727 4664 1

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ii

Introduction

Contents

Page

Introduction

Helping you to pass

v

Studying F5

vii

The exam paper and exam formulae

viii

Syllabus and Study Guide

ix

Part A Specialist cost and management accounting techniques

1 Costing

3

2a Activity based costing

19

2b Target costing

31

2c Life cycle costing

39

2d Throughput accounting

49

2e Environmental accounting

65

Part B Decision-making techniques

3 Cost volume profit (CVP) analysis

77

4 Limiting factor analysis

101

5 Pricing decisions

127

6 Short-term decisions

163

7 Risk and uncertainty

183

Part C Budgeting and control

8 Budgetary systems

217

9 Quantitative analysis in budgeting

247

10 Budgeting and standard costing

267

11 Variance analysis

287

12 Planning and operational variances

311

13 Performance analysis and behavioural aspects

327

Part D Performance measurement and control

14 Performance management information systems

345

15 Sources of management information and management reports

363

16 Performance measurement in private sector organisations

381

17 Divisional performance and transfer pricing

411

18 Further aspects of performance management

433

Practice question bank

449

Practice answer bank

479

Index

533

Review form

Contents iii

iv

Introduction

Helping you to pass

BPP Learning Media ? ACCA Approved Content Provider

As an ACCA Approved Content Provider, BPP Learning Media gives you the opportunity to use study materials reviewed by the ACCA examination team. By incorporating the examination team's comments and suggestions regarding the depth and breadth of syllabus coverage, the BPP Learning Media Study Text provides excellent, ACCA-approved support for your studies.

The PER alert

Before you can qualify as an ACCA member, you not only have to pass all your exams but also fulfil a three year practical experience requirement (PER). To help you to recognise areas of the syllabus that you might be able to apply in the workplace to achieve different performance objectives, we have introduced the 'PER alert' feature. You will find this feature throughout the Study Text to remind you that what you are learning to pass your ACCA exams is equally useful to the fulfilment of the PER requirement. Your achievement of the PER should now be recorded in your online My Experience record.

Tackling studying

Studying can be a daunting prospect, particularly when you have lots of other commitments. The different features of the Study Text, the purposes of which are explained fully on the Chapter features page, will help you whilst studying and improve your chances of exam success.

Developing exam awareness

Our Study Texts are completely focused on helping you pass your exam. Our advice on Studying F5 outlines the content of the paper, the necessary skills you are expected to be able to demonstrate and any brought forward knowledge you are expected to have. Exam focus points are included within the chapters to highlight when and how specific topics were examined, or how they might be examined in the future.

Using the Syllabus and Study Guide

You can find the syllabus and Study Guide on pages ix - xvii of this Study Text.

Testing what you can do

Testing yourself helps you develop the skills you need to pass the exam and also confirms that you can recall what you have learnt. We include Questions ? lots of them ? both within chapters and in the Practice Question Bank, as well as Quick Quizzes at the end of each chapter to test your knowledge of the chapter content.

Introduction v

Chapter features

Each chapter contains a number of helpful features to guide you through each topic.

Topic list

Topic list

Syllabus r ef er ence

What you will be studying in this chapter and the relevant section numbers, together with ACCA syllabus references.

Introduction Study Guide Exam Guide

Knowledge brought forward from earlier studies FAST FORWARD

Examples

Key terms Exam focus points Formula to learn

Question Case Study

Puts the chapter content in the context of the syllabus as a whole.

Links the chapter content with ACCA guidance.

Highlights how examinable the chapter content is likely to be and the ways in which it could be examined.

What you are assumed to know from previous studies/exams.

Summarises the content of main chapter headings, allowing you to preview and review each section easily.

Demonstrate how to apply key knowledge and techniques.

Definitions of important concepts that can often earn you easy marks in exams.

When and how specific topics were examined, or how they may be examined in the future.

Formulae that are not given in the exam but which have to be learnt.

Gives you a useful indication of syllabus areas that closely relate to performance objectives in your Practical Experience Requirement (PER).

Gives you essential practice of techniques covered in the chapter.

Real world examples of theories and techniques.

Chapter Roundup Quick Quiz Practice Question Bank

A full list of the Fast Forwards included in the chapter, providing an easy source of review.

A quick test of your knowledge of the main topics in the chapter.

Found at the back of the Study Text with more comprehensive chapter questions. Cross referenced for easy navigation.

vi

Introduction

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