Performance Management
Master advanced management accounting techniques including activity-based costing, relevant costing, CVP analysis, pricing decisions, budgeting systems, and divisional performance measurement.
Exam Duration
3 hours
Pass Mark
50%
Students
30,000+
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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.
What You'll Learn
- Explain the role of management information systems and data analytics
- Apply specialist cost and management accounting techniques
- Apply decision-making techniques to business scenarios
- Prepare and evaluate budgets and apply variance analysis
- Evaluate performance using financial and non-financial measures
- Apply transfer pricing principles for divisional performance
Career Relevance
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.
Exam Format
- Duration:3 hours
- Pass Mark:50%
- Format:Section A: Objective test questions (20 marks) and Section B: Constructed response questions (80 marks)
Prerequisites
Completion of ACCA Applied Knowledge papers. A solid understanding of MA (Management Accounting) is essential as PM builds directly on MA concepts.
PM Exam Syllabus
The PM syllabus covers the key topics you'll be examined on.
- Management information systems
- Uses and control of information
- Big data and data analytics
- Activity-based costing
- Target costing
- Life-cycle costing
- Throughput accounting
- Accounting for environmental and sustainability factors
- 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
- 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 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.
Computer-Based Exam (CBE)
3 hours
Section A: Objective test questions (20 marks) and Section B: Constructed response questions (80 marks)
March, June, September, December
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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