ACCA P5
ACCA Paper P5
Advanced
Performance
Management
Class Notes
June 2011
© The Accountancy College Ltd, January 2011
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of The Accountancy College Ltd.
2
Contents
PAGE
INTRODUCTION TO THE PAPER
5
FORMULAE & TABLES PROVIDED IN THE EXAMINATION PAPER
9
CHAPTER 1:
STRATEGY
13
CHAPTER 2:
STRATEGIC MANAGEMENT ACCOUNTING
27
CHAPTER 3:
DIVISIONAL PERFORMANCE INDICATORS
39
CHAPTER 4:
TRANSFER PRICING
51
CHAPTER 5:
DESIGN OF PERFORMANCE MANAGEMENT SYSTEMS
59
CHAPTER 6:
DECISION - MAKING
71
CHAPTER 7:
NON-FINANCIAL PERFORMANCE INDICATORS
81
CHAPTER 8:
BUDGETING
93
CHAPTER 9:
MANAGEMENT INFORMATION SYSTEMS
103
CHAPTER 10: STRATEGIC OPTIONS
115
APPENDIX – ANSWERS TO QUESTIONS & EXAMPLES
123
3
4
Introduction to the paper 5
IN T R O D U C T I O N T O T H E P A P E R
AIM OF THE PAPER
The aim of the paper is to apply relevant knowledge, skills, and exercise professional judgement in selecting and applying strategic management accounting techniques in different business contexts and to contribute to the evaluation of an organisation and its strategic development.
OUTLINE OF THE SYLLABUS
1.
Strategic planning and control
2.
Economic, fiscal, market and environmental factors
3.
Performance measurement systems and design
4.
Strategic performance measurement
5.
Performance evaluation and corporate failure
6.
Current developments and emerging issues in management accounting and performance management
FORMAT OF THE EXAM PAPER
The syllabus is assessed by a three hour paper-based examination.
The examination consists of:
●
Section A – two compulsory questions
Advanced
Performance
Management
Class Notes
June 2011
© The Accountancy College Ltd, January 2011
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of The Accountancy College Ltd.
2
Contents
PAGE
INTRODUCTION TO THE PAPER
5
FORMULAE & TABLES PROVIDED IN THE EXAMINATION PAPER
9
CHAPTER 1:
STRATEGY
13
CHAPTER 2:
STRATEGIC MANAGEMENT ACCOUNTING
27
CHAPTER 3:
DIVISIONAL PERFORMANCE INDICATORS
39
CHAPTER 4:
TRANSFER PRICING
51
CHAPTER 5:
DESIGN OF PERFORMANCE MANAGEMENT SYSTEMS
59
CHAPTER 6:
DECISION - MAKING
71
CHAPTER 7:
NON-FINANCIAL PERFORMANCE INDICATORS
81
CHAPTER 8:
BUDGETING
93
CHAPTER 9:
MANAGEMENT INFORMATION SYSTEMS
103
CHAPTER 10: STRATEGIC OPTIONS
115
APPENDIX – ANSWERS TO QUESTIONS & EXAMPLES
123
3
4
Introduction to the paper 5
IN T R O D U C T I O N T O T H E P A P E R
AIM OF THE PAPER
The aim of the paper is to apply relevant knowledge, skills, and exercise professional judgement in selecting and applying strategic management accounting techniques in different business contexts and to contribute to the evaluation of an organisation and its strategic development.
OUTLINE OF THE SYLLABUS
1.
Strategic planning and control
2.
Economic, fiscal, market and environmental factors
3.
Performance measurement systems and design
4.
Strategic performance measurement
5.
Performance evaluation and corporate failure
6.
Current developments and emerging issues in management accounting and performance management
FORMAT OF THE EXAM PAPER
The syllabus is assessed by a three hour paper-based examination.
The examination consists of:
●
Section A – two compulsory questions