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F5 Study Document PDF
F5 Study Document PDF
F5 Study Document PDF
Relational diagram of the main capabilities ACCA's Approved Content Programme is the
programme through which ACCA approves
This diagram illustrates the flows and links between learning materials from high quality content
the main capabilities (sections) of the syllabus and providers designed to support study towards ACCA’s
should be used as an aid to planning teaching and qualifications.
learning in a structured way.
ACCA has three Approved Content Providers, Becker
Professional Education,
BPP Learning Media and Kaplan Publishing.
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For information about ACCA's progresses through each module and level. This
Approved Content Providers please go to reflects that at each stage of study there will be a
ACCA's Content Provider Directory. requirement to broaden, as well as deepen
capabilities. It is also possible that occasionally
The Directory also lists materials by other some higher level capabilities may be assessed at
publishers, these materials have not been quality lower levels.
assured by ACCA but may be helpful if used in
conjunction with approved learning materials or for LEARNING HOURS AND EDUCATION
variant exams where no approved content is RECOGNITION
available. You will also find details of Additional
Reading suggested by the examining teams and this The ACCA qualification does not prescribe or
may be a useful supplement to approved learning recommend any particular number of learning hours
materials. for examinations because study and learning
patterns and styles vary greatly between people and
ACCA's Content Provider Directory can be found organisations. This also recognises the wide
here – diversity of personal, professional and educational
H http://www.accaglobal.com/uk/en/student/acca- circumstances in which ACCA students find
qual-student-journey/study-revision/learning- themselves.
providers/alp-content.html
As a member of the International Federation of
Relevant articles are also published in Student Accountants, ACCA seeks to enhance the education
Accountant and available on the ACCA website. recognition of its qualification on both national and
international education frameworks, and with
INTELLECTUAL LEVELS educational authorities and partners globally. In
doing so, ACCA aims to ensure that its qualifications
The syllabus is designed to progressively broaden are recognized and valued by governments,
and deepen the knowledge, skills and professional regulatory authorities and employers across all
values demonstrated by the student on their way sectors. To this end, ACCA qualifications are
through the qualification. currently recognized on the education frameworks in
several countries. Please refer to your national
The specific capabilities within the detailed education framework regulator for further
syllabuses and study guides are assessed at one of information.
three intellectual or cognitive levels:
Each syllabus contains between 23 and 35 main
Level 1: Knowledge and comprehension subject area headings depending on the nature of
Level 2: Application and analysis the subject and how these areas have been broken
Level 3: Synthesis and evaluation down.
Very broadly, these intellectual levels relate to the GUIDE TO EXAM STRUCTURE
three cognitive levels at which the Knowledge
module, the Skills module and the Professional level The structure of examinations varies within and
are assessed. between modules and levels.
Each subject area in the detailed study guide The Fundamentals level examinations contain
included in this document is given a 1, 2, or 100% compulsory questions to encourage
3 superscript, denoting intellectual level, marked at candidates to study across the breadth of each
the end of each relevant line. This gives an syllabus.
indication of the intellectual depth at which an area
could be assessed within the examination. However, The Knowledge module is assessed by equivalent
while level 1 broadly equates with the Knowledge two-hour paper based and computer based
module, level 2 equates to the Skills module and examinations.
level 3 to the Professional level, some lower level
skills can continue to be assessed as the student The Skills module examinations F5-F9 are all paper
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basedthree-hour papers containing a mix of GUIDE TO EXAMINATION ASSESSMENT
objective and longer type questions.
ACCA reserves the right to examine anything
The Corporate and Business Law (F4) paper is a contained within the study guide at any examination
two- hour computer based objective test session. This includes knowledge, techniques,
examination which is also available as a paper principles, theories, and concepts as specified.
based version from the December 2014
examination session. For the financial accounting, audit and assurance,
law and tax papers except where indicated
The Professional level papers are all three-hour otherwise, ACCA will publish examinable
paper based examinations, all containing two documents once a year to indicate exactly
sections. Section A is compulsory, but there will be what regulations and legislation could potentially be
some choice offered in Section B. assessed within identified examination sessions..
For all three hour examination papers, ACCA has For paper based examinations regulation issued or
introduced 15 minutes reading and planning time. legislation passed on or before 31st August annually,
will be examinable from 1st September of the
This additional time is allowed at the beginning of following year to 31st August t of the year after that.
each three-hour examination to allow candidates to Please refer to the examinable documents for the
read the questions and to begin planning their paper (where relevant) for further information.
answers before they start writing in their answer
books. This time should be used to ensure that all
Regulation issued or legislation passed in
the information and exam requirements are properly
accordance with the above dates may be
read and understood.
examinable even if the effective date is in the future.
During reading and planning time candidates may The term issued or passed relates to when
only annotate their question paper. They may not regulation or legislation has been formally approved.
write anything in their answer booklets until told to
do so by the invigilator. The term effective relates to when regulation or
legislation must be applied to an entity transactions
The Essentials module papers all have a Section A and business practices.
containing a major case study question with all
requirements totalling 50 marks relating to this The study guide offers more detailed guidance on
case. Section B gives students a choice of two from the depth and level at which the examinable
three 25 mark questions. documents will be examined. The study guide
should therefore be read in conjunction with the
Section A of both the P4 and P5 Options papers examinable documents list.
contain one 50 mark compulsory question, and
Section B will offer a choice of two from three
questions each worth 25 marks each.
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MAIN CAPABILITIES
Decision-making
techniques (B) Performance
management and
control (D)
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RATIONALE systems can be used to facilitate this. They should
appreciate the importance of both financial and
The syllabus for Paper F5, Performance non-financial performance measures in
Management, builds on the knowledge gained in management. Accountants should also appreciate
Paper F2, Management Accounting. and seek to the difficulties in assessing performance in
examine candidates’ understanding of how to divisionalised businesses and the problems caused
manage the performance of a business. It also by failing to consider external influences on
prepares candidates for more specialist capabilities performance. This section leads directly to Paper
which are covered in P5 Advanced Performance P5.
Management.
All of the subject areas covered in this syllabus
The syllabus begins by introducing more specialised could be examined in either a public sector or
management accounting topics. There is some private sector context.
knowledge assumed from Paper F2 – primarily
overhead treatments. The objective here is to
ensure candidates have a broader background in
management accounting techniques.
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DETAILED SYLLABUS D Performance measurement and control
3. Limiting factors
5. Make-or-buy and other short-term decisions The syllabus is assessed by a three-hour paper-
based examination.
6. Dealing with risk and uncertainty in decision-
making All questions are compulsory. It will contain both
computational and discursive elements.
C Budgeting and control Some questions will adopt a scenario/case study
approach.
1 Budgetary systems
Section A of the exam comprises 20 multiple choice
2. Types of budget questions of 2 marks each.
8 Performance analysis and behavioural aspects Candidates are provided with a formulae sheet
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Study Guide b) Describe the different methods a business may
use to account for its environmental costs.[1]
A SPECIALIST COST AND MANAGEMENT
ACCOUNTING TECHNIQUES B DECISION-MAKING TECHNIQUES
a) Identify appropriate cost drivers under ABC.[1] a) Explain the concept of relevant costing.[2].
b) Calculate costs per driver and per unit using b) Identify and calculate relevant costs for a
ABC.[2] specific decision situations from given data.[2]
c) Compare ABC and traditional methods of c) Explain and apply the concept of opportunity
overhead absorption based on production costs.[2]
units, labour hours or machine hours.[2]
2. Cost volume profit analysis
2. Target costing
a) Explain the nature of CVP analysis.[2]
a) Derive a target cost in manufacturing and
service industries.[2] b) Calculate and interpret break even point and
margin of safety.[2]
b) Explain the difficulties of using target costing in
service industries.[2] c) Calculate the contribution to sales ratio, in
single and multi-product situations, and
c) Suggest how a target cost gap might be demonstrate an understanding of its use.[2].
closed.[2]
d) Calculate target profit or revenue in single and
3. Life-cycle costing multi-product situations, and demonstrate an
understanding of its use.[2]
a) Identify the costs involved at different stages of
the life-cycle.[2] e) Prepare break even charts and profit volume
charts and interpret the information contained
b) Derive a life cycle cost in manufacturing and within each, including multi-product
service industries.[2] situations.[2]
c) Identify the benefits of life cycle costing.[2] f) Discuss the limitations of CVP analysis for
planning and decision making.[2]
4. Throughput accounting
3. Limiting factors
a) Discuss and apply the theory of constraints.[2]
a) Identify limiting factors in a scarce resource
b) Calculate and interpret a throughput situation and select an appropriate technique.[2]
accounting ratio (TPAR).[2]
b) Determine the optimal production plan where
c) Suggest how a TPAR could be improved.[2] an organisation is restricted by a single limiting
factor, including within the context of “make”
d) Apply throughput accounting to a multi-product or “buy” decisions.[2].
decision-making problem.[2]
c) Formulate and solve multiple scarce resource
5. Environmental accounting problem both graphically and using
simultaneous equations as appropriate.[2]
a) Discuss the issues business face in the
management of environmental costs.[1]
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d) Explain and calculate shadow prices (dual b) Calculate and compare “make” costs with
prices) and discuss their implications on “buy-in” costs.[2]
decision-making and performance
management. [2] c) Compare in-house costs and outsource costs of
completing tasks and consider other issues
e) Calculate slack and explain the implications of surrounding this decision.[2]
the existence of slack for decision-making and
performance management.[2] d) Apply relevant costing principles in situations
(Excluding simplex and sensitivity to changes involving shut down, one-off contracts and the
in objective functions) further processing of joint products.[2]
c) Derive and manipulate a straight line demand b) Explain the use of simulation, expected values
equation. Derive an equation for the total cost and sensitivity.[1]
function(including volume-based discounts).[2]
c) Apply expected values and sensitivity to
d) Calculate the optimum selling price and decision-making problems.[2]
quantity for an organisation, equating marginal
cost and marginal revenue[2] d) Apply the techniques of maximax, maximin,
and minimax regret to decision-making
e) Evaluate a decision to increase production and problems including the production of profit
sales levels, considering incremental costs, tables.[2]
incremental revenues and other factors.[2]
e) Draw a decision tree and use it to solve a
f) Determine prices and output levels for profit multi-stage decision problem
maximisation using the demand based
approach to pricing (both tabular and algebraic f) Calculate the value of perfect and imperfect
methods) .[1] information.
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e) Explain how budget systems can deal with 5. Material mix and yield variances
uncertainty in the environment.[2]
a) Calculate, identify the cause of, and explain
2. Types of Budget material mix and yield variances.[2]
a) Prepare rolling budgets and activity b) Explain the wider issues involved in changing
based budgets.[2] material mix e.g. cost, quality and performance
measurement issues.[2]
b) Indicate the usefulness and problems with
different budget types (including fixed, flexible, c) Identify and explain the relationship of the
zero-based, activity- based, incremental, material usage variance with the material mix
rolling, top-down, bottom up, master, and yield variances.[2]
functional).[2]
d) Suggest and justify alternative methods of
c) Explain the difficulties of changing the type of controlling production processes.[2]
budget used.[2]
6. Sales mix and quantity variances
3. Quantitative analysis in budgeting
a) Calculate, identify the cause of, and explain
a) Analyse fixed and variable cost elements from sales mix and quantity variances.[2]
total cost data using high/low method.
b) Identify and explain the relationship of the
b) Estimate the learning rate and learning effect[2] sales volume variances with the sales mix and
quantity variances.[2]
c) Apply the learning curve to a budgetary
problem, including calculations on steady 7. Planning and operational variances
states [2]
a) Calculate a revised budget.[2]
d) Discuss the reservations with the learning
curve.[2] b) Identify and explain those factors that could
and could not be allowed to revise an original
e) Apply expected values and explain the budget.[2]
problems and benefits.[2]
c) Calculate, identify the cause of and explain
f) Explain the benefits and dangers inherent in planning and operational variances for:
using spreadsheets in budgeting. [2] i) sales, including market size and market
share;
4. Standard costing ii) materials;
iii) labour, including the effect of the learning
a) Explain the use of standard costs.[2] curve.[2]
b) Outline the methods used to derive standard d) Explain and discuss the manipulation issues
costs and discuss the different types of cost involved in revising budgets.[2]
possible.[2]
8. Performance analysis and behavioural aspects
c) Explain and illustrate the importance of flexing
budgets in performance management.[2] a) Analyse and evaluate past performance using
the results of variance analysis.[2]
d) Explain and apply the principle of
controllability in the performance management b) Use variance analysis to assess how future
system.[2] performance of an organisation or business can
be improved.[2]
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c) Identify the factors which influence c) Identify and discuss the direct data capture
behaviour.[2] and process costs of management accounting
information. [2]
d) Discuss the issues surrounding setting the
difficulty level for a budget.[2] d) Identify and discuss the indirect costs of
producing information.[2]
e) Discuss the effect that variances have on staff
motivation and action.[2] e) Discuss the limitations of using externally
generated information.[2]
f) Explain the benefits and difficulties of the
participation of employees in the negotiation of 3. Management reports
targets.[2]
a) Discuss the principal controls required in
g) Describe the dysfunctional nature of some generating and distributing internal
variances in the modern environment of JIT information.[2]
and TQM.[2]
b) Discuss the procedures that may be necessary
h) Discuss the behavioural problems resulting to ensure security of highly confidential
from using standard costs in rapidly changing information that is not for external
environments.[2] consumption.[2]
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5. Divisional performance and transfer pricing
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SUMMARY OF CHANGES TO F5
ACCA periodically reviews its qualification syllabuses so that they fully meet the needs of stakeholders such as
employers, students, regulatory and advisory bodies and learning providers.
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