Performance management PM, famous as F5 is the second skill level exam in the ACCA journey. As the name suggests, the paper is an extension of Managerial Accounting F2 with much more details and complications.
Passing ratio
Performance management paper can be a student’s nightmare because it is the toughest one in the list of ACCA exams. Most of the students struggle in passing the paper and usually, they fail their first attempt. Thatswhy the passing ratio for many years has been 30% to 40%, very rarely it crosses this limit.
Nature of exam:
Most students think that performance management is a paper full of calculations and formulas which is a myth. Actually, the paper is half based on calculations and half based on the theory that how well you understand your calculations and interpretation of the calculated figures.
The total time allowed for the paper is 3 hours plus extra 10 minutes for reading instructions. The paper is divided into 3 sections:
- section A: it consists of 15 multiple choice questions having 2 marks each.
- section B: it comprises three scenario-based questions, each having 5 multiple-choice questions. each scenario contains 10 marks.
- section C: it has 2 long questions having 20 marks each.
Major areas to focus on:
- Accounting Techniques for Cost Management
- Decision Making
- Budgeting
- Performance measurement
- Controls
No matter how difficult a paper is, there are always techniques that help to easily pass the paper. F5 is no exception!
I’m going to share a few tips that will help you not only pass the ACCA F5 but you will be able to aim for distinction in the exam.
1. Do not skip any topic:
Make sure to go through all the topics included in your F5 syllabus. Although you have to be more serious with the four major topics mentioned above, this does not mean that you should skip any of the topics. Because section A and section B will be covering the whole syllabus.
Remember that most of the students fail to pass the ACCA F5 due to its unpredictable nature. The questions in sections A and B could come from any topic in the syllabus and there’s no division of more and less important topics.
2. The F5 Theory has saved many…
As mentioned above the nature of this subject is both, theoretical and calculative. So don’t dare to skip the theoretical part because the majority of the marks is depending on the explanation of your calculation.
Calculation is one thing. You will encounter many questions solely based on calculations in exam but there’s no guarantee you will pass the ACCA F5 by just learning and practicing the numerical parts. Theory is a major aspect of F5 and you need to learn it well enough.
A simple tip: when you’re done calculating, think about the resultant figure. What does it represent? Is it Good or Bad? How could the business improve this figure and what are the factors that affect this figure? Asking yourself these types of questions will improve your commenting and analysis thus improving your chances of passing the F5 exam.
3. Practice is vital, here’s how:
When you start studying from the textbook, do not think that once you will complete the study textbook then you will start practicing the questions because this is definitely a bad idea, because you may have forgotten what you have studied. The best approach is to understand one topic and then start practicing its questions from the kit.
Preparing for any ACCA paper is a step-by-step process. You need to learn the basics and then let yourself float in the sea of question banks. The best approach is to cover a chapter, solve its questions at the end of the chapter and then start practicing the questions in kit for that particular chapter. The more you practice, the easier it will get.
If you’re looking for study material, download F5 Books and Kits for Free.
4. Keep it short and simple:
Examiner does not want the long paragraphs in your answer, just keep your answer to the point. Try to make bullet points as well. It is better to be short and to the point.
Think of this: you ask someone a straightforward question and he respond back in puzzles. OUCH!
Always try to structure your answer in an easy and understandable format. Be precise and don’t just add up words for the sake of making your answer long. It is a bad impression.
5. Past papers and examiner report:
Solving past papers is the best way to analyze your preparation. It tells you exactly where are you at and helps you identify your weak points.
Once you identify your weak zone, read those chapters again, and collect important and relevant points. Also, read technical articles by the examiner. They provide insights from the examining team and help you develop a winning strategy for the paper.
6. Time management:
The majority of students fail due to their wrong time management, they consume more than half of their time on section A and section B And left with very little time for section C. Try to complete the first two sections in the first hour or 1 hour and 15 minutes and consume the rest of your time in solving section C because it needs critical analysis as you also have to comment on your findings.
The best way to improve your time management is to solve mocks in exam conditions, many websites provide you with free mocks including ACCA Global.
