Tài liệu ACCA mới nhất từ BPP môn P5,

Tài liệu ACCA mới nhất từ BPP môn P5, sách có giá trị cho kỳ thi đến tháng 6-2014, Revision Text. File PDF dạng Text cực đẹp.

BPP Learning Media is the sole ACCA Platinum Approved Learning Provider – content

for the ACCA qualification In this, the only Paper P5 Practice and Revision Kit to be

reviewed by the examiner:

 We discuss the best strategies for revising and taking your ACCA exams

 We show you how to be well prepared for your exam

 We give you lots of great guidance on tackling questions

 We show you how you can build your own exams

 We provide you with three mock exams including the new Pilot Paper

Our Passcard and i-Pass products also support this paper

FOR EXAMS UP TO JUNE 2014

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We are grateful to the Association of Chartered Certified Accountants for permission to reproduce past examination questions The suggested solutions in the exam answer bank have been prepared by BPP Learning Media Ltd, except where otherwise stated

©BPP Learning Media Ltd

2013

Contents

Page

Finding questions

Question index v

Topic index x

Helping you with your revision – the ONLY P5 Practice and Revision Kit to be reviewed by the examiner! xii

Revising P5 Topics to revise & question practice xiii

Passing the P5 exam xiv

Exam formulae xviii

Exam information xx

Analysis of past papers xxiv

Useful websites xxv

Planning your question practice BPP Learning Media's question plan xxvi

Build your own exams xxxv

Questions and answers Questions 3

Answers 125

Exam practice Mock exam 1  Questions 457

 Plan of attack 465

 Answers 467

Mock exam 2  Questions 485

 Plan of attack 497

 Answers 500

Mock exam 3 (Pilot Paper)  Questions 523

 Plan of attack 531

 Answers 533

ACCA examiner's answers  Pilot paper 555

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Using your BPP Learning Media products

This Kit gives you the question practice and guidance you need in the exam Our other products can also help you pass:

 Learning to Learn Accountancy gives further valuable advice on revision

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Question index

The headings in this checklist/index indicate the main topics of questions, but questions often cover several

different topics Where necessary, questions have been amended to reflect the new format of the exam, from June

2013

Questions set under the old syllabus Performance Management paper are included because their style and content

are similar to those which appear in the P5 exam They have 'PM' after the question name These questions have

been amended to reflect the current exam format Questions taken from the P3 Business Analysis syllabus (when a

re-alignment of syllabuses took place in 2010) are denoted by ‘BA' after the question name

Exam questions set under the current syllabus are designated 'APM' after the question name

Time Page number Marks

allocation (Mins) Question Answer

Part A: Strategic planning and control

1 Diverse holdings (PM 12/05, amended) 25 45 3 125

2 ST University 25 45 4 127

3 HEG (APM 12/07, amended) 25 45 5 131

4 CTC (APM 6/08, Preparation question) 20 36 6 134

5 AB Electronics 25 45 7 137

6 Megasnack 25 45 8 139

7 Ganymede (APM 6/12, amended) 25 45 9 142

8 Budgeting (Preparation question) 20 36 10 147

9 Business process re-engineering 25 45 10 149

Time Page number Marks

allocation (Mins) Question Answer

Part C: Performance measurement systems and design

33 Cobra Golf Club (Preparation question) 20 36 32 208

34 Bluefin School (APM 12/11, amended) 25 45 34 210

Part D: Strategic performance measurement

41 Alpha Division (APM 12/07) 25 45 41 230

42 BAG (APM 12/08, Preparation question) 20 36 43 234

43 SSA (APM 12/09, amended) 25 45 44 236

44 Seatown 25 45 45 240

45 LGHD (APM 6/10, amended) 25 45 46 243

46 CFE coffee shops 25 45 46 245

47 JIT systems (Preparation question) 20 36 47 247

48 Tench (APM 12/11, amended) 25 45 48 250

49 TAW (APM 6/08, amended) 25 45 49 253

50 Thebe (APM 6/12, amended) 25 45 50 255

51 T4UC (APM 6/09, amended) 25 45 51 259

52 SSH (APM 12/08) 25 45 52 262

53 KPG Systems 25 45 53 265

54 Universal Pottery Company (BA 12/07) 25 45 54 267

55 CCT Computer Systems (Preparation question) 12 22 55 272

56 Astrodome (PM 12/05, amended) 25 45 55 273

57 TRG (APM 6/08, amended) 25 45 57 274

58 UU (APM 6/09, amended) 25 45 58 277

Time Page number Marks

allocation (Mins) Question Answer

59 Elegant Hotels (BA 6/09) 25 45 59 279

65 APX Accountancy (APM 6/11, amended) 25 45 66 296

66 Eatwell Restaurant (PM 6/02, amended) 25 45 67 299

67 Amal (APM 6/12, amended) 25 45 67 302

68 B2B Deliveries 25 45 68 306

69 Glitter Fashions 25 45 69 309

70 TOC (APM 12/08, Preparation question) 20 36 70 311

71 SFS (APM 6/10, amended) 25 45 71 313

72 LOL cards (APM 12/10, amended) 25 45 72 315

73 BEG (APM 6/10, amended) 25 45 73 318

74 ENT Entertainments (APM 6/11, amended) 25 45 74 321

Time Page number Marks

allocation (Mins) Question Answer

Part F: Current developments and emerging issues

in performance management

84 Environmental management accounting (Preparation question) 20 36 85 348

85 Management accounting relevance (Preparation question) 20 36 85 349

86 School League Tables 25 45 85 352

87 BPL Leisure 25 45 87 354

88 Mentons 25 45 88 357

Section A Questions

89 Cognet 50 90 89 361

90 Armstrong Stores (Sample question, amended) 50 90 90 365

91 Robust Laptops (APM 12/10, amended) 50 90 93 371

92 RRR (APM 12/09, amended) 50 90 95 376

93 BWY houses 50 90 97 380

94 Film Productions Co (APM 12/10, amended) 50 90 99 387

95 Metis (APM 6/12, amended) 50 90 100 391

102 Glasburgh (APM 6/09, amended) 50 90 116 435

103 AAA Management Consultancy 50 90 117 443

104 Zed Leisure 50 90 119 446

Planning your question practice

Our guidance from page xxvi shows you how to organise your question practice, either by attempting questions

from each syllabus area or by building your own exams – tackling questions as a series of practice exams

June and December 2013 exams

BPP’s answers for these exams along with a small number of additional questions will be available for free after the exams on http://www.bpp.com/acca

Ansoff's growth vector matrix Appraisals and performance management

75, 76, 90

60

Branding 46 Budgeting and types of budget 8, 91, 92, Mock 2 Qn 2

Building blocks model (Fitzgerald and Moon) 65, 66, 98

2, 5, 24, 25, Mock 1 Qn 2, Mock 1 Qn 4

33, 34, Mock 2 Qn 1

9, 12, 14, 30, Mock 1 Qn 2, Mock 3 Qn 1 JIT

Joint ventures

47, 48

77

Syllabus topic Question numbers

Non-financial performance indicators 35, 38, 50(a) 89, 101

Objectives 38

Performance management in complex business

structures

77, 78 Performance management information systems 24, 26, 27, 29, 97

Problems of performance measurement 56, 57

Qualitative information

Quality

28

42, 50, 53-55

Responsibility and controllability 27, Mock 3 Qn 2

Strategic management accounting 5, 13, 18, 89, 90

Helping you with your revision – the ONLY P5 Practice and Revision Kit to be reviewed by the examiner!

BPP Learning Media – the sole Platinum Approved Learning Partner - content

As ACCA’s sole Platinum Approved Learning Partner – content, BPP Learning Media gives you the unique opportunity to use examiner-reviewed revision materials for the 2013 and June 2014 exams By incorporating the

examiner’s comments and suggestions regarding syllabus coverage, the BPP Learning Media Practice and Revision Kit provides excellent, ACCA-approved support for your revision

Tackling revision and the exam

You can significantly improve your chances of passing by tackling revision and the exam in the right ways Our advice is based on feedback from ACCA examiners

 We look at the dos and don'ts of revising for, and taking, ACCA exams

 We focus on Paper P5; we discuss revising the syllabus, what to do (and what not to do) in the exam, how

to approach different types of question and ways of obtaining easy marks

Selecting questions

We provide signposts to help you plan your revision

 A full question index

 A topic index listing all the questions that cover key topics, so that you can locate the questions that provide

practice on these topics, and see the different ways in which they might be examined

 BPP's question plan highlighting the most important questions and explaining why you should attempt

them

 Build your own exams, showing how you can practise questions in a series of exams

Making the most of question practice

At BPP Learning Media we realise that you need more than just questions and model answers to get the most from your question practice

 Our Top tips included for certain questions provide essential advice on tackling questions, presenting

answers and the key points that answers need to include

 We show you how you can pick up Easy marks on some questions, as we know that picking up all readily

available marks often can make the difference between passing and failing

 We include marking guides to show you what the examiner rewards

 We include examiners' comments to show you where students struggled or performed well in the actual

exam

 We refer to the 2012 BPP Study Text (for exams up to June 2014) for detailed coverage of the topics

covered in questions

Attempting mock exams

There are three mock exams that provide practice at coping with the pressures of the exam day We strongly recommend that you attempt them under exam conditions Mock exams 1 and 2 reflect the question styles and

syllabus coverage of the exam; Mock exam 3 is the new Pilot paper which ACCA has issued for 2013 exams

Revising P5

Topics to revise

Any part of the syllabus could be tested in the compulsory Section A question Therefore it is essential to learn the

entire syllabus to maximise your changes of passing There are no short cuts – trying to spot topics is dangerous

and will significantly reduce the likelihood of success As this is an advanced paper it also assumes knowledge of

topics covered in Paper F5 – Performance Management

That said, the main capabilities in the syllabus (which is on ACCA’s website) take you through what the examiner

expects from you when you have completed your studies There are six key areas for you to concentrate on These

six areas are the syllabus areas covered in the Study Text

However, whilst it is important that you work through your way through the Study Text and cover all the different

syllabus areas, it is also important to try and think how the areas might relate to each other, and how they could be

used to help managers in a business control and improve the performance of a business Remember, this paper is

about performance management, and not simply about performance measurement

Remember to come out of the detail once you have finished a chapter and practised some questions Take some

time to reflect on how the chapter has covered the syllabus and how it feeds back into the capabilities which you

will need to display in order to pass this paper

Question practice

You should use the Passcards and any brief notes you have to revise the syllabus, but you mustn't spend all your

revision time passively reading Question practice is vital; doing as many questions as you can in full will help

develop your ability to analyse scenarios and produce relevant discussion and recommendations The question plan

on page xxviii tells you what questions cover so that you can choose questions covering a variety of syllabus areas

Make sure you leave enough time in your revision schedule to practise 50 mark Section A questions, as the Section

A question is compulsory in the exam The scenarios and requirements of Section A questions are more extensive

than Section B questions and will integrate several parts of the syllabus, therefore practice is essential Also ensure

that you attempt all three mock exams under exam conditions

Passing the P5 exam

Displaying the right qualities

The examiner, Alex Watt, wrote an article in Student Accountant in August 2010 where he outlined the qualities he

expects students to display He based his advice on the six main syllabus areas (A to F) and what qualities students should demonstrate under each We reproduce the main points here

1. The application of strategic planning and control models in performance management The models stress the

need to take an all-encompassing view of the factors that affect a business and to consider them when giving strategic advice on performance Good candidates at Paper P5 often distinguish themselves by being able to synthesise disparate detailed points into an overall, strategic approach for an organisation

2 Factors external to the business Here candidates need to move beyond the internal factors associated with

traditional management accounting to consider the information needs of the strategic level of management as well

as the operational and tactical levels

3 The information that management require and the systems that are needed for its delivery Candidates are

expected to be aware of the effect of information technologies on performance management decision making rather than the detail of these technologies They should be conversant with the broad hardware and software trends and issues and how these interact with the provision of performance information throughout the organization

4 and 5. The fourth capability is the application of the techniques and assumed knowledge to specific scenarios

You shouldn’t simply discuss theories and models in general terms; you need to apply them specifically to the scenario identified in the question. The fifth capability is being able to take this information and turn it into advice which is commercially valuable for strategic decision makers This capability also requires the candidate to be

able to recognise and advise on situations where the organisation is in danger of failing

6. Finally, candidates are expected to be aware of new knowledge from the general technical press The

examiner stresses that articles in Student Accountant may be sources of topics for the exam, although as the

syllabus is not regularly updated older articles may also remain relevant

There will be a small number of Professional marks available in the compulsory 50 mark Section A question, and it

should be possible for a well-prepared student to score most of these For example, the effective use of appropriate introductions and conclusions, and helpfully breaking the document into properly headed sub-sections, will help to demonstrate a professional approach to writing a report However, it should be stressed that the approach taken will vary from question to question and the exam tests the candidates’ ability to apply their knowledge of

professional presentation In order to score full professional marks, the answer will have to be tailored to the specifics of the scenario in the question recognising the needs of the readers of the document

Presentation points First: on rounding At this final level the candidate should use their own judgment on how to

round figures – the basic rule is that there should be enough detail to make a useful conclusion without obscuring it with insignificant figures

Second, short paragraphs are usually clear but single sentence paragraphs are often insufficient and unable to get

to the depth required at Paper P5 Bullet points are useful for lists but not if commentary is required Finally, reading model solutions is not a substitute for actually writing out your own answers

Summarising the advice the examiner gives:

 Use an ACCA-approved textbook for Paper P5 They are structured around the syllabus and the examiner

reviews them so that they give an effective coverage of what is examinable

 Practise questions under exam conditions in order to improve speed and presentation skills, ensuring these test discursive, computational and analytic abilities

 Study all the relevant articles that appear in Student Accountant

 Be able to clearly communicate understanding and application of knowledge in the context of a Professional level exam

The questions tend to be wide-ranging, as the examiner wants to link topics and mix ideas up So you are better

knowing something about every part of the syllabus than a lot of detail about a few areas only

Avoiding weaknesses

Our experience of, and examiner feedback from, other higher level exams enables us to predict a number of

weaknesses that are likely to occur in many students’ answers You will enhance your chances significantly if you ensure you avoid these mistakes:

 Failing to provide what the question verbs require (discussion, evaluation, recommendation) or to write

about the topics specified in the question requirements

 Repeating the same material in different parts of answers

 Stating theories and concepts rather than applying them

 Quoting chunks of detail from the question that don't add any value

 Failing to make the most of the information given in the question Remember, you need to apply your

knowledge specifically to the scenario given in the question

 Failing to set out workings clearly and separately

 Not planning and preparing the answer properly, taking into account mark allocation Students often leave

part-questions out

 Not refreshing brought-forward knowledge (for example, from Paper F5)

Use of reading time

ACCA permits a 15-minute reading time in addition to the 3 hour time given to sit this paper

We recommend that you spend the first part of the 15 minutes reading time choosing the Section B questions you

will do, on the basis of your knowledge of the syllabus areas being tested and whether you can fulfil all the question requirements Remember that Section B questions can cover different parts of the syllabus, and you should be

happy with all the areas that the questions you choose cover We suggest that you should note on the paper any

ideas that come to you about these questions

However don't spend all the reading time going through and analysing the Section B question requirements in

detail; leave that until the three hours’ writing time Instead you should be looking to spend as much of the reading

time as possible looking at the Section A scenario, as this will be longer and more complex than the Section B

scenarios and cover more of the syllabus You should highlight and annotate the key points of the scenario on the

question paper

Choosing which questions to answer first

Spending most of your reading time on the Section A scenario will mean that you can get underway with planning

and writing your answer to the Section A question as soon as the three hours start It will give you more actual

writing time during the one and a half hours you should allocate to it, and it is writing time that you'll need

Comments from examiners of other syllabuses that have similar exam formats suggest that students appear less time-pressured if they do the big compulsory question first

During the second half of the exam, you can put Section A aside and concentrate on the two Section B questions you’ve chosen

However, our recommendations are not inflexible If you really think the Section A question looks a lot harder than the Section B questions you’ve chosen, then do one of those first, but DON'T run over time on it You must have an

hour and a half to tackle the Section A question and you will feel under much more pressure on it if you leave it till last If you do one of the Section B questions first, and then tackle the Section A question having had initial

thoughts on it during the reading time, you should be able to generate more ideas and find the Section A question is not as bad as it looks

Remember also that small overruns of time during the first half of the exam can add up to you being very short of time towards the end

Tackling questions

You'll improve your chances by following a step-by-step approach along the following lines

Step 1 Read the background

Usually the first couple of paragraphs will give some background on the company and what it is aiming to achieve By reading this carefully you will be better equipped to relate your answers to the company as much as possible

Step 2 Read the requirements

There is no point reading the detailed information in the question until you know what it is going to

be used for Don’t panic if some of the requirements look challenging – identify the elements you are able to do and look for links between requirements, as well as possible indications of the syllabus areas the question is covering

Step 3 Highlight the action verbs that are used in each requirement

These convey the level of skill you need to exhibit and also the structure your answer should have A lower level verb such as define will require a more descriptive answer; a higher level verb such as evaluate will require a more applied, critical answer

The examiner has stressed that higher level requirements and verbs will be most significant in this

paper, for example critically evaluating a statement and arguing for or against a given idea or position Action verbs that are likely to be frequently used in this exam are listed below, together with their intellectual levels and guidance on their meaning

Level

3 Assess Determine the strengths/weaknesses/importance/

significance/ability to contribute

3 Discuss Examine in detail by using arguments for and against

3 Recommend Advise the appropriate actions to pursue in terms the

recipient will understand

3 Evaluate Determine the value of, in the light of the arguments for and

against

Step 4 Identify what each part of the question requires

Think about what frameworks of theories you could choose to support your answer (if the question

doesn’t indicate a specific one you need to use)

Look at how the different parts of a question fit together, and make sure you don’t end up repeating

the same points in more than one part of the question

Step 4 Check the mark allocation to each part

This shows you the depth anticipated and helps allocate time

Step 5 Read the question slowly, focusing on the initial requirements

Once you know what you are expected to do in the first requirement, read the question in detail,

trying to focus on the information that will be needed for your first task

Step 6 Read the scenario carefully

Put points under headings related to requirements (eg by noting in the margin to what part of the

question the scenario detail relates)

Step 7 Consider the consequences of the points you’ve identified

You will often have to provide recommendations based on the information you've been given Be

prepared to criticize the framework or model that you’ve been told to use, if required You may have

also to bring in wider issues or viewpoints, for example the views of different stakeholders

Step 8 Write a brief plan

You may be able to do this on the question paper as often there will be at least one blank page in the

question booklet However any plan you make should be reproduced in the answer booklet when

writing time begins Make sure you identify all the requirements of the question in your plan – each

requirement may have sub-requirements that must also be addressed If there are professional

marks available, highlight in your plan where these may be gained; for example, preparing a report

Step 9 Write the answer

Make every effort to present your answer clearly The pilot paper and exam papers so far indicate that

the examiner will be looking for you to make a number of clear points The best way to demonstrate

what you’re doing is to put points into separate paragraphs with clear headers

Discussion questions

Do not be tempted to write all you know about a particular topic in a discussion question Markers can easily spot

when a student is ‘waffling’ and you will receive little or no credit for this approach Keep referring back to the

question requirement to ensure you are not straying from the point

To make it easier for the marker to determine the relevance of the points you are making, you could explain what

you mean in one sentence and then why this point is relevant in another

Remember that depth of discussion will be important Always bear in mind how many marks are available for the

discussion as this will give you an indication of the depth that is required Ask yourself the following questions as

you are tackling a discussion question:

 Have I made a point in a coherent sentence?

 Have I explained the point (to answer the ‘so what’ or ‘why’ queries)?

 Have I related the point to the company in the scenario?

Exam formulae

Exam information

The exam paper

Format of the paper

The format of the P5 exam has changed, with effect from June 2013 The new format is:

Number of marks

100 Time: 3 hours plus 15 minutes reading time

Please note: Although the format of the exams has changed from June 2013, the underlying syllabus content and the way in which subjects are examined has not changed The changes only relate to the number of questions in

the exam, and the mark allocations for each question

Section A will be a compulsory case study question, typically with four or five sub-requirements relating to the

same scenario information The question will usually assess and link a range of subject areas from across the syllabus It will require students to demonstrate high-level capabilities to understand the complexities of the case, and evaluate, relate and apply the information in the case study to the requirements

Professional marks will be available in Section A for presentation, logical flow of argument and quality of argument

Section B questions are more likely to assess a range of discrete subject areas from the main syllabus section

headings; they may require evaluation and synthesis of information contained within short scenarios and

application of this information to the question requirements

Although one subject area is likely to be emphasised in each Section B question, students should not assume that questions will be solely about content from that area Each question will be based on a short case scenario to contextualise the question

The pass mark for Paper P5 remains at 50%

http://www.accaglobal.com/en/student/qualification-resources/acca-qualification/acca-exams/p5-exams/exams-Please note, these questions reflect of the format of the exam prior to 2013 In the main body of this Kit, where we have used past exam questions, we have adapted them to fit the format of the exam from June 2013

Examiner’s comments

The following comments have been extracted from the reports the Examiner has written on past exams They

illustrate common weaknesses in candidates’ answers, and therefore highlight areas you should consider in your

preparation for the exam, in order to avoid making the mistakes the Examiner has commented on

June 2012

As has been noted in previous sittings, candidates still need to appreciate that performance management is an area

which, at an advanced level, is dependent on situation and environment Therefore a good answer will go beyond

the mere repetition of how a technique or model works, and will relate it to an entity’s specific environment Equally, good answers will evaluate how useful a technique is for a given scenario, rather than simply describing that

technique

The quality of the numerical workings and the commentary on the results of these workings remains an area of

concern For example, when rounding numbers, 229.6 rounds to 230 not 229 An accountant is expected to be an

expert on numerical issues in a business situation, but this sort of carelessness can dent that reputation When

commenting on numerical work, there were numerous examples of scripts that did little more than put into

sentences the numbers which had been calculated For example, simply stating that one company has a higher

profit margin than another, does not add any value, and so such a comment will gain no marks

Also, as in previous sittings, candidates do not appear to be spending sufficient time reading the question and

understanding its requirements For example, if you are asked to evaluate a company’s performance report, that is

not the same thing as being asked to evaluate a company’s performance

December 2011

In general, it was encouraging to see candidates making use of the detail use of the detail provided in the scenario

The basis of this examination is analysis and application Candidates need to appreciate that performance

management is an area which, at an advanced level, is dependent on situation and environment Therefore a good

answer will go beyond the mere repetition of how a technique or model works, and will relate it to an entity’s

specific environment

Some candidates are still not spending sufficient time reading the questions and understanding their requirements

Questions must not be ‘skim’ read There were numerous examples of answers which related to a different question requirement than the one which had actually be set, and therefore only scored very few marks For example, one of

the questions asked for an evaluation of a company’s performance measurement system It did not ask for an

evaluation of the company’s performance, although a number of candidates provided an evaluation of the

company’s performance Similarly, one of the other questions asked about the suitability of the performance

information which was used to assess a shop manager’s performance Again, the focus should have been on the

performance information, not the shop or the manager’s performance

June 2011

It was encouraging to see some candidates applying good analytic reasoning, and making better use of the detail

provided in the question scenario If candidates come into the P5 examination expecting to repeat memorised

material, they will probably only score between 20% and 30%

The basis of this examination is analysis and application Candidates will need to a foundation in the techniques and models listed in the syllabus, but should focus more on the evaluation of these techniques and consideration of

their usefulness to given scenarios

Performance management, at an advanced level like P5, is dependent on situation and context A good answer will

go beyond simple description of how a technique works, and will focus on relating it to the specific scenario given

in the question

In general, candidates appear better at description than analysis However, candidates need to remember that the P5 examination is intended to test their ability to ‘add value’ in their work – in other words, to identify the key points

in a scenario, and then apply their knowledge to them in order to address performance issues or performance improvements as required by the question

Many candidates would clearly also benefit from planning their answers For example, in their answers to question

5 a number of candidates discussed the organisation’s mission statement in part (a) (i), although this was actually a requirement of part (a) (ii)

It was also noticeable that some candidates had clearly memorised solutions to past examination questions and were determined to include them in their answers to the questions set here Unfortunately this does not work, and you must make your answers appropriate to the specific scenario being described in the question

June 2009

Well-prepared candidates achieved comfortable passes However many candidates failed quite badly and few were marginal in their performance Common errors included not answering all parts to questions and a tendency to write at length without answering the question Candidates must set out their answers clearly and label their scripts

to help markers This is especially important as professional marks can be earned for presentation and

June 2008

A significant number of candidates provided good answers to every question they attempted and consequently

earned high marks However, the overall performance of candidates was good Poor candidates revealed poor

presentation and/or time management or not observing the specific requirements of each question

Candidates need to give more thought to the layout and organisation of their answers now that professional marks

are available for well-presented answers

Analysis of past papers

The table below provides details of when each element of the syllabus has been examined and whether it was

examined as part of a compulsory question (‘C’) or an optional one (‘O’) Please note that up to December 2012, the exam contained two compulsory questions, unlike exams from 2013 which will only contain one compulsory

STRATEGIC PLANNING AND CONTROL

1 Introduction to strategic management

3 Business structure, IT developments and

other environmental and ethical issues

C, C

EXTERNAL INFLUENCES ON ORGANISATIONAL PERFORMANCE

4 Changing business environment and external

8 Scope of strategic performance measures in

the private sector

10b Non-financial performance indicators O C

11 The role of quality in management

information and performance measurement systems

13 Alternative views of performance

measurement and management

14 Strategic performance issues in complex

business structures

15 Predicting and preventing corporate failure O O

CURRENT DEVELOPMENTS AND EMERGING ISSUES IN PERFORMANCE MANAGEMENT

16 Current developments, issues and trends O O

Useful websites

The websites below provide additional sources of information of relevance to your studies for Advanced

Performance Management

 www.accaglobal.com

ACCA's website The students' section of the website is invaluable for detailed information about the

qualification, past issues of Student Accountant (including technical articles) and even interviews with the

examiners

 www.bpp.com

Our website provides information about BPP products and services, with a link to the ACCA website

 www.ft.com

This website provides information about current international business You can search for information and

articles on specific industry groups as well as individual companies

 www.economist.com

Here you can search for business information on a week-by-week basis, search articles by business subject

and use the resources of the Economist Intelligence Unit to research sectors, companies or countries

 www.cfo.com

This site provides useful news and insights for financial executives

Planning your question practice

We have already stressed that question practice should be right at the centre of your revision Whilst you will spend some time looking at your notes and Paper P5 Passcards, you should spend the majority of your revision time practising questions

We recommend two ways in which you can practise questions

 Use BPP Learning Media's question plan to work systematically through the syllabus and attempt key and

other questions on a section-by-section basis

 Build your own exams – attempt questions as a series of practice exams

These ways are suggestions and simply following them is no guarantee of success You or your college may prefer

an alternative but equally valid approach

Additional questions

BPP’s answers for the June and December 2013 exams, along with a small number of additional questions, will be available after the relevant exams on: http://www.bpp.com/acca

BPP Learning Media's question plan

The BPP plan below requires you to devote a minimum of 40 hours to revision of Paper P5 Any time you can

spend over and above this should only increase your chances of success

Step 1 Review your notes and the chapter summaries in the Paper P5 Passcards for each section of the

syllabus

Step 2 Answer the key questions for that section These questions have boxes round the question number

in the table below and you should answer them in full Even if you are short of time you must attempt these questions if you want to pass the exam You should complete your answers without referring to our solutions

Step 3 Attempt the other questions in that section For some questions we have suggested that you prepare

answer plans or do the calculations rather than full solutions Planning an answer means that you

should spend about 40% of the time allowance for the questions brainstorming the question and drawing up a list of points to be included in the answer

Step 4 Attempt Mock exams 1, 2 and 3 under strict exam conditions.

Syllabus section

2012 Pass cards chapters

6 Prepare an answer plan

Ensuring localised decision-making is aligned to overall strategic goals is an important aspect of performance management, and is the main focus of this question

7 Answer in full

The focus of this question, based on one from the June

2012 exam is benchmarking However, you need to use benchmarking to assess the performance of an

organisation, rather than simply discussing, in general terms, what benchmarking is or how it could be useful for an organisation

Performance

management and

control of the

organisation

2 91 Answer parts (a) & (b) only, in full

This question, adapted from the December 2010 exam, looks at different aspects of costing and budgeting, in particular ‘beyond budgeting’ Note your answer should

be presented as a report

92 Answer part (a) only

This question (from the December 2009 exam) tests your knowledge of alternative budget models, in particular ‘beyond budgeting.’

Syllabus section

2012 Pass cards chapters

Prepare an answer plan

It is important to appreciate the influence that different stakeholders can have on organisations’ strategies and performance

Risk and uncertainty are examined in the compulsory question in the Pilot Paper (which you will cover as Mock Exam 3 later) The issue here is: how do risk and uncertainty affect planning and decision-making in an organisation?

93 Prepare an answer plan

This question combines aspects of risk and uncertainty with a discussion of the way external factors can affect

an organisation’s performance

(As a minimum, you should prepare an answer plan for this question, but if you have time you should tackle the question in full, to get practice at answering 50 mark questions.)

19 Answer in full

A question from the June 2009 exam which looks at investment decisions (in particular, NPV calculations) and risk (in particular, decision rules)

Syllabus section

2012 Pass cards chapters

Prepare an answer plan

This question (adapted from the December 2009 exam) combines an evaluation of financial performance, with a discussion of the factors that should influence a proposed business decision

Answer in full

This question (based on the December 2010 exam) reminds you that performance management is not simply about financial performance management Here the focus is on environmental performance, specifically carbon dioxide emissions

This question looks at various issues surrounding the provision of information and how it can be used in organisations

34 Answer in full

This question (adapted from the December 2011 exam) looks at two different aspects of management

information: controls and security; and, the usefulness

of information and performance reports

Syllabus section

2012 Pass cards chapters

The main focus of this question (adapted from the December 2010 exam) is on critical success factors (CSFs) and key performance indicators (KPIs) However, there is also a reference back to information systems (from the previous section), and part of the question also looks at mission statements

95 Answer in full

This question (adapted from the June 2012 exam) combines issues around performance reports with the choice of measures which an organisation selects in order to help manage its performance

35 Prepare an answer plan

This question (amended from the December 2009 paper) looks at three different aspects of the performance hierarchy: mission, critical success factors, and performance measures It is very important

to recognise the link between CSFs and KPIs in the performance hierarchy

Scope of strategic

performance

measures in the

private sector

8 97 Answer parts (a) – (c) in full

This question is adapted from a compulsory question in the June 2011 exam The examiner has highlighted the importance of being able to ‘evaluate’ performance or performance models The focus in part (a) of this question is on evaluating the performance of a division

The focus in part (c) is on evaluating the potential impact of introducing a new executive information system

98 Prepare an answer plan for part (a)

This question has been adapted from a compulsory question in the December 2008 exam Part (a) highlights that performance does not simply mean financial performance

Parts (b) and (c) cover topics covered in Chapter 16 (Current developments and issues)

99 Answer part (a) in full

This question is adapted from a compulsory question in the December 2009 exam Use this to test your

familiarity with financial and non-financial measures of performance

Syllabus section

2012 Pass cards chapters

Questions

in this Kit Comments

Done

 Divisional

100 Answer part (a) in full

This question is based on one from the June 2008 exam Again it looks at a range of different financial performance measures as well as bonuses and reward schemes

43 Answer in full

The main focus of this question from the December

2009 is transfer pricing in a strategic context

10a 44 Prepare an answer plan

This question looks at the aspects of performance which are important when generating a profit is not an

organisation’s primary objective

This question (adapted from the June 2010 exam) looks

at the importance of non-financial performance indicators, particularly with reference to the balanced scorecard

Prepare an answer plan

Another question the June 2010 exam, this time looking

at the importance of value for money, and the measures

of economy, efficiency, and effectiveness in public sector organisations

The role of quality

The main focus of this question (adapted from the June

2012 exam) is Six Sigma and its role in improving performance Part (c) looks specifically at the DMAIC methodology for implementing Six Sigma

Syllabus section

2012 Pass cards chapters

Questions

in this Kit Comments

Done

 Performance

measurement:

strategy reward and

behaviour

12 56 Prepare an answer plan

This question looks at some specific problems with performance measurement, but you need to be aware of the potential problems with performance measurement in general

Prepare an answer plan

This question looks at the potential problems reward management schemes can cause in organisations if they are poorly designed

Make sure you base your answer directly on the scenario rather than preparing a ‘theoretical’ answer

64 Answer in full

This question (taken from the December 2011 exam) focuses on another multi-dimensional performance management model: the performance pyramid

65 Answer in full

This question (adapted from the June 2011 exam) looks

at a third multi-dimensional performance management model – the building block model

67 Answer in full

This question (adapted from the June 2012 exam) looks

at another different model: the performance prism

72 Answer in full

This question (amended from the December 2010 exam) looks at value generation in respect of a company’s shareholders Specific topics covered are value-based management, activity-based management, and EVA

Syllabus section

2012 Pass cards chapters

Questions

in this Kit Comments

Done

 Strategic

performance issues

in complex

business structures

This question (adapted from the June 2011exam) looks

at the BCG matrix, and how the matrix can be used to evaluate a company’s performance However, note that

in part (b) you also need to evaluate the model itself

How useful is BCG analysis as a performance management system?

77 Prepare an answer plan

This question looks at the performance management issues which arise in relation to joint ventures

78 Answer in full

This question (adapted from the June 2012 exam) looks

at the difficulties of performance measurement and performance management in a virtual company

Predicting and

preventing

corporate failure

15 80 Prepare an answer plan

This question addresses two separate topics Use part (a) to revise your understanding of Porter's Five forces model Then use part (b) to make sure you understand how performance measures can be used to indicate corporate failure

81 Answer in full

This question (amended from the December 2010 exam) looks at performance issues which can lead to corporate failure, and the models which can be used to help predict corporate failure

83 Answer in full

This question looks specifically at Argenti’s A score model, and its usefulness for predicting corporate failure

86 Prepare an answer plan

This question looks at the use of league tables for monitoring performance What are the advantages and disadvantages of using league tables to monitor performance?

Current

developments,

issues and trends

16

87 Prepare an answer plan

This question looks at the changing role of management accountants in organisations

Syllabus section

2012 Pass cards chapters

Questions

in this Kit Comments

Done



88 Prepare an answer plan

This is a second question looks at the changing role of management accountants in organisations, but with a direct reference to the work of Burns and Scapens, which is specifically mentioned in the P5 syllabus

Build your own exams

Having revised your notes and the BPP Learning Media Passcards, you can attempt the questions in the Kit as a

series of practice exams using the suggestions we have listed below

Questions

June and December 2013 exams BPP’s answers for these exams, along with a small number of additional questions, will be available for free after the exams on http://www.bpp.com/acca

STRATEGIC PLANNING AND CONTROL

Questions 1 to 16 cover strategic planning and control, the subject of Part A of the BPP Study Text for Paper P5

Diverse Holdings plc has five wholly-owned subsidiary companies These are:

(i) Organic Foods Ltd (OFL) which is involved in the production and sale of organically grown fruit and

vegetables OFL has built up a very good reputation as a supplier of quality produce

(ii) Haul-Trans Ltd (HTL) which was acquired on 1 December 20X5 and is involved in transporting a range of

products on behalf of third parties

(iii) Kitchen Appliances Ltd (KAL) which is involved in the manufacture and sale of small, manually-operated

kitchen appliances KAL has recently suffered from squeezed margins as a consequence of competition from

low cost imports

(iv) Paper Supplies Ltd (PSL) which manufactures and sells a narrow range of stationery products to two

distributors

(v) Office Products Ltd (OPL) which manufactures and sells computer workstations with unique design features

which are highly regarded by health and safety experts

The management accountant of Diverse Holdings plc has gathered the following actual and forecast information

relating to the five subsidiaries:

Year ending 30 November 20X3 20X4 20X5 20X6 20X7

The management accountant has also collated the following information relating to the market share held at 30

November 20X5 by the market leader in those markets in which each subsidiary operates: