F5 PM | Exam Kit - BPP

What is F5 Performance Management (MA)?

The ACCA F5 Performance Management Paper continues from Paper F2 and is concerned with managing the business in order to achieve better performance. In Paper F2, most of the topics were introduced, but are examined in more detail and in greater depth.

Syllabus of F5 Performance Management (MA)

The aim of the syllabus is to develop knowledge and skills in the application of accounting management techniques to quantitative and qualitative planning, decision-making, performance assessment and control information.

The Performance Management (PM) syllabus builds on the knowledge gained in Management Accounting (MA) and seeks to examine the understanding of how candidates can manage a company's performance. It also prepares candidates for more specialist skills covered by Advanced Performance Management (APM).

The syllabus begins by focusing on the information needs, technologies and systems required in the modern, competitive environment by organizations to manage and measure performance.

It is important for an accountant to understand how information systems and technology developments affect the management accounting techniques used and how important information systems are in an organization's management and control mechanisms.

The syllabus then introduces more specialized accounting topics for costing and management. Some knowledge from Management Accounting (MA) is assumed-primarily overhead treatments. The aim here is to ensure that candidates have a wider background in accounting techniques for management.

Then the syllabus considers decision-making. Candidates need to appreciate the problems surrounding scarce resources, pricing and decisions to make or buy, and how this relates to performance evaluation.

Risk and uncertainty are a factor in decision-making in real life, and candidates need to understand risk and be able to use certain basic methods to help solve the risks involved in decision-making.

An important aspect of the lives of many accountants is budgeting. The syllabus explores various techniques for budgeting and the problems inherent in them. It is important for accountants to understand the behavioral aspects of budgeting, and the syllabus includes consideration of the way individuals react to a budget. Knowledge from Management Accounting is assumed to prepare fixed, flexible and incremental budgets (MA).

It then builds on standard costs and variances. All of the variances examined in Management Accounting (MA) are assumed to have Performance Management knowledge (PM).
Mix and yield variances are explored here as well as planning and operational variances, and the link is made to performance management. In the context of performance, it is important for accountants to be able to interpret the numbers they calculate and discuss what they mean.

The syllabus concludes with measuring and controlling performance. A major area of the syllabus is this. Accountants should appreciate the importance of management performance measures, both financial and non-financial, and should also appreciate the difficulties of assessing performance in divisional businesses and the problems caused by failure to consider external performance influences. This section leads directly to Advanced Management of Performance (APM).

In either a public sector or a private sector context, all of the subject areas covered by this syllabus could be examined.

Main capabilities

To Completion the exam successfully, candidates should be able to:

• Identify and discuss the information, systems and technological developments needed to manage and measure performance for organizations.
• Explain cost accounting techniques and apply them.
• Select and apply decision-making techniques appropriately to facilitate business decisions and to promote the efficient and effective use of scarce business resources, to appreciate and control the risks and uncertainties inherent in business.
• Identify and apply appropriate planning and control budgeting techniques and methods and use standard costing systems to measure and control the performance of businesses and to identify corrective actions.
• From both a financial and non-financial point of view, assess an organization's performance, appreciate the problems of controlling divisionalized businesses and the importance of allowing external aspects.