ACCA · Applied Skills
Performance Management
Master advanced management accounting techniques including activity-based costing, relevant costing, CVP analysis, pricing decisions, budgeting systems, and divisional performance measurement.
3 hours
Exam length
50%
Pass mark
Computer-Based Exam (CBE)
Format
March, June, September, December
Sittings
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ACCA Performance Management
Performance Management (PM) is an Applied Skills paper that builds on the knowledge gained in Management Accounting (MA). It examines how management accountants provide information to support management in planning, controlling, and making decisions to optimise performance.
The paper covers management information systems and data analytics, specialist cost and management accounting techniques such as activity-based costing, target costing, life-cycle costing, and throughput accounting. It also addresses decision-making techniques including relevant costing, CVP analysis, limiting factors, and pricing decisions.
PM further develops students' understanding of budgeting and control systems, including advanced variance analysis (mix and yield, planning and operational variances), and performance measurement and control across different organisational types.
PM develops the advanced analytical skills needed for management accounting, financial planning and analysis (FP&A), and business partnering roles. These skills are in high demand across corporate finance departments, consulting firms, and management accounting practices.
Learning outcomes
What you'll be able to do.
01
Explain the role of management information systems and data analytics
02
Apply specialist cost and management accounting techniques
03
Apply decision-making techniques to business scenarios
04
Prepare and evaluate budgets and apply variance analysis
05
Evaluate performance using financial and non-financial measures
06
Apply transfer pricing principles for divisional performance
PM Exam Syllabus
The PM syllabus covers the key topics you'll be examined on.
Management Information Systems and Data Analytics
- Management information systems
- Uses and control of information
- Big data and data analytics
Specialist Cost and Management Accounting Techniques
- Activity-based costing
- Target costing
- Life-cycle costing
- Throughput accounting
- Accounting for environmental and sustainability factors
Decision-Making Techniques
- Relevant cost analysis
- Cost-volume-profit analysis (CVP)
- Limiting factors
- Pricing decisions
- Make-or-buy and other short-term decisions
- Dealing with risk and uncertainty in decision-making
Budgeting and Control
- Budgetary systems and types of budget
- Analytical techniques in budgeting and forecasting
- Standard costing
- Material mix and yield variances
- Sales mix and quantity variances
- Planning and operational variances
- Performance analysis
Performance Measurement and Control
- Performance analysis in private sector, public sector and not-for-profit organisations
- Divisional performance and transfer pricing
- Specific performance analysis issues in not-for-profit organisations and the public sector
ACCA PM Exam Structure
Everything you need to know about the PM exam format, timing, and what to expect on exam day.
Duration
3 hours
Format
Computer-Based Exam (CBE)
Structure
PM is a 3-hour computer-based exam with three sections. Section A: 15 objective test questions worth 2 marks each (30 marks). Section B: three case-style questions, each with five OT questions of 2 marks (30 marks). Section C: two 20-mark constructed response questions (40 marks). All questions are compulsory. Total 100 marks.
Sittings
March, June, September, December
Pass mark
50%
Your Guide To Pass ACCA PM
Expert tips from our tutors to help you prepare effectively and pass your PM exam on the first attempt.
Master Decision-Making Techniques
Relevant costing, CVP analysis, and limiting factor analysis are heavily tested. Practice identifying relevant costs and applying these techniques to different scenarios.
Learn Advanced Variances
PM introduces mix and yield variances and planning/operational variances. Understand when each type applies and practice the calculations thoroughly.
Apply Knowledge to Scenarios
PM requires you to apply techniques to realistic business scenarios. Always read the question carefully and tailor your answer to the specific context given.
Time Your Constructed Responses
Section B carries 80% of the marks. Allocate your time based on the marks available for each question and don't spend too long on any single requirement.
Understand Transfer Pricing
Transfer pricing and divisional performance measurement are important topics. Understand the different transfer pricing methods and their impact on divisional and overall company performance.
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See ACCA pricing →Frequently Asked Questions About PM
Everything you need to know about the Performance Management exam and how to prepare for it.
What is ACCA Performance Management (PM)?+
Performance Management (PM) is an Applied Skills paper that develops advanced management accounting skills. It covers specialist costing techniques, decision-making methods, budgeting and control systems, and performance measurement across different types of organisations.
What are the prerequisites for PM?+
You need to complete the Applied Knowledge papers (BT, MA, FA) before sitting PM. A strong understanding of Management Accounting (MA) is particularly important as PM builds directly on those concepts.
How long is the PM exam?+
The PM exam is 3 hours long. It is a computer-based exam with Section A (objective test questions worth 20 marks) and Section B (constructed response questions worth 80 marks).
When can I sit the PM exam?+
PM is available in four exam sessions per year: March, June, September, and December.
What topics does PM cover?+
PM covers management information systems and data analytics, specialist costing techniques (ABC, target costing, life-cycle costing, throughput accounting), decision-making techniques, budgeting and control including advanced variances, and performance measurement and control.
How does PM differ from MA?+
While MA introduces basic cost accounting and budgeting, PM takes these concepts further with specialist techniques and strategic applications. PM focuses more on analysis, decision making, and performance evaluation rather than basic recording and calculation.
What is the pass mark for PM?+
The pass mark for PM is 50%. The exam is marked out of 100.
How should I prepare for PM?+
Focus on practicing calculations and written answers under timed conditions. Understand the theory behind each technique and be able to apply it to scenarios. Use Learnsignal's structured courses for comprehensive preparation with expert guidance.
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