Demonstrating Knowledge Of Performance Management Accounting Is Essential For Successfully Completing The Paper F5 Exam
Different exams entail different challenges. Although the accounting discipline may be driven by numeric requirements, the ability to be able to construct a ‘wordy’ response can have a significantly positive effect on your marks. The following exam advice comes from the demanding ACCA F5 syllabus – covering the requirements of performance management accounting.
Those candidates of business or financial syllabi who struggle with the requirements of writing will find this advice extremely helpful. Your main focus should be taking the time to understand the examiner’s instructions – understanding which of those instructions will produce high marks is just the focus needed for a successful score.
Using the Paper F5 exam as a guide, you’ll find the following requirements to be essential for demonstrating knowledge of performance management:
Basic requirements to pass include the ability to …
Outline
Be sure to keep your outline fairly brief as well as well organised. It is simply an overview, without the level of detail that would be required by the ‘describe’ instruction, for example. As it requires only minor detail, be aware you may be asked to outline a bigger topic than you will have time to describe.
Identify
This means to list and pinpoint. It can be quite a simple requirement of performance management accounting, requiring knowledge rather than skill.
Describe
When you are asked to ‘describe’ something you are expected to give some sort of narrative about it. For example, if you were being asked to describe suitable non‑financial performance indicators for a hospital, you would be expected to describe indicators such as number of patient complaints, bed occupancy rate, number of admissions per employee. It would not be enough to merely ‘list’ these indicators. A good answer will go a step further and describe how these might be calculated.
Suggest
There may be more than one answer to these questions, so you are merely suggesting your best possible answer. You will be required to give a suitable idea or solution, bearing in mind there is probably multiple answers. For example, you might be asked to suggest how a target cost gap can be closed. As there are many possible wasy to close a cost gap, your answer can only ever be you’re most desirable suggestion.
Explain
This means that you need to give a reason for something; say why it is as it is rather than just stating that it is. It is a very common requirement and it requires understanding as well as knowledge.
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