ACCA F5 Exam Techniques

ACCA F5 – Performance Management is all about costing. Advanced from ACCA F2, F5 is concerned with managing business so as to achieve overall better performance. It is tested here in more detail than F2

It comprises of 5 different portions which are

  • Management Accounting Techniques
  • Decision Making Techniques
  • Budgeting
  • Variances
  • Performance Measurement
As ACCA have included MCQ’s into fundamental series so every syllabus area is equally important and MCQ’s can come from any area of syllabus so you should have sound knowledge of every area of ACCA F5
Management Accounting Techniques is comparatively an easy topic and covers Activity Based costing (ABC), Life cycle costing, Throughput accounting, Target costing and Environment costing. ABC, Throughput and Target focuses both on calculations and analysis while Life cycle and Environment Costing are theory based. It may become part of MCQ’s or alone 10 marks question or with some other topic.

Decision Making Techniques is a bit tricky topic in the area and involves Relevant cost, Cost volume, Limiting factor analysis, Pricing decisions, make or buy decisions and dealing with risk and uncertainty. This is tested in detail and you have to do both calculations and analysis. This area is tested in 15 marks questions sole or with some other topic.

Budgeting is all about how to prepare and forecast budgets. It is easy area of topic and covers Budgetary systems, Types of budgets, Quantitative analysis in budgeting. It may be tested in 15 marks question sole or with some other topic.

Variances is quite easy for anyone who can understand it and will be difficult if they couldn’t. Mix and yield, Planning and operational and Sale variances are now the topics together with performance analysis and behavioral aspects which will be tested in 10 marks question sole or with some other topic.

Performance measurement is also an important area as well and may be tested in 10 marks question or become part of other questions too. It includes Ratios, Divisional performance, Transfer pricing and Information systems.