What is F5 Performance Management (MA)?
The ACCA F5 Performance Management Paper follows on from Paper F2 and is concerned with managing the business to improve performance. The majority of the topics were introduced in Paper F2, but are now examined in greater detail and depth.
Syllabus of F5 Performance Management (MA)
The syllabus is designed to help students gain knowledge and skills in the application of accounting management techniques to quantitative and qualitative planning, decision-making, performance evaluation, and control information.
The Performance Management (PM) syllabus builds on the knowledge gained in Management Accounting (MA) and seeks to assess candidates' understanding of how to manage the performance of a company. It also prepares candidates for Advanced Performance Management's more specialized skills (APM).
The syllabus begins by focusing on the information needs, technologies, and systems required by organizations in today's competitive environment to manage and measure performance.
An accountant must understand how information systems and technological developments affect management accounting techniques and how important information systems are in an organization's management and control mechanisms.
The curriculum then moves on to more specialized accounting topics such as costing and management. Management Accounting (MA) knowledge is assumed, primarily for overhead treatments. The goal is to ensure that candidates have a broad understanding of accounting techniques for management.
The syllabus then moves on to decision-making. Candidates must understand the issues surrounding scarce resources, pricing, and purchasing decisions, as well as how this relates to performance evaluation.
In real life, risk and uncertainty are factors in decision-making, and candidates must understand risk and be able to use basic methods to help solve the risks involved in decision-making.
Budgeting is an important aspect of many accountants' lives. The syllabus delves into various budgeting techniques and the issues that arise as a result of them. Accounting students must understand the behavioral aspects of budgeting, and the curriculum includes a discussion of how people react to budgets. To prepare fixed, flexible, and incremental budgets, knowledge of management accounting is assumed (MA).
It then proceeds to build on standard costs and variances. In Management Accounting (MA), all variances are assumed to have Performance Management knowledge (PM).
Variances in mix and yield, as well as planning and operational variances, are discussed, and a link to performance management is made. Accounting professionals must be able to interpret and discuss the numbers they calculate in the context of performance.
The syllabus concludes with performance measurement and control. This is a significant portion of the curriculum. Accountants should understand the significance of management performance measures, both financial and non-financial, as well as the difficulties of assessing performance in divisional businesses and the issues caused by failure to consider external performance influences. This section leads directly to Advanced Performance Management (APM).
All of the subject areas covered by this syllabus could be examined in either a public or private sector context.
Main capabilities
- Identify and discuss the information, systems, and technological developments required to manage and measure organizational performance.
- Explain and apply cost accounting techniques.
- Choose and apply appropriate decision-making techniques to facilitate business decisions and promote the efficient and effective use of scarce business resources, as well as to recognize and control the risks and uncertainties inherent in business.
- Identify and apply appropriate budgeting and planning techniques and methods, as well as standard costing systems, to measure and control business performance and identify corrective actions.
- Assess an organization's performance from both a financial and non-financial standpoint, recognize the difficulties of controlling divisionalized businesses, and recognize the importance of allowing for external factors.
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