Demonstrating Knowledge Of Performance Management Accounting Is Essential For Successfully Completing The Paper F5 Exam
Different exams entail different challenges. In a discipline often driven by numeric requirements the ability to respond clearly to ‘wordy questions’ can make a real difference to 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. It is very important to take time to make sure you understand the instruction being given by the examiner – then focus on which of those instructions will lead to high marks.
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 are 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 asked to ‘describe’ you are expected to give a thorough narrative. 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. A list in this case is not nearly sufficient. A good answer will go a step further and describe how they might be calculated.
Suggest
The use of the word ‘suggest’ itself suggests that there may be more than one answer to the question being asked. It means give a suitable idea or solution, bearing in mind that there will probably be more than one. 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 stating the reason behind 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.