For Exams from September 2024 to June 2025 – (PM) Performance Management   

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Chapters Table of Contents Confidence Levels Notes Bookmarks Highlights

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Chapter 1: Management Information Systems and Data Analytics 

Overview CHAPTER 1: Visual Overview

1.1 Managing Information 1.1.1 Information Systems

1.1.2 Information Technology

1.1.3 Principal Controls

1.1.4 Confidential Information

1.2 Sources of Information 1.2.1 Principal Sources

1.2.2 Use of Information in Control

1.3 Information Systems and 1.3.1 Accounting Information Requirements

Data Analytics 1.3.2 Information Systems

1.3.3 Big Data

1.3.4 Topic Explainer Video Big Data and Data Analytics 

1.4.1 Presenting and 1.4.1 Importance of Data Visualisation

Interpreting Data 1.4.2 Tables

1.4.3 Charts and Graphs

1.4.4 Bar Charts

1.4.5 Line Charts

1.4.6 Pie Charts

1.4.7 Scatter Diagram

1.4.8 Inappropriate Use of Data Visualisation

1 Conclusion 1 Syllabus Coverage

1 Summary and Quiz r

1 Technical Articles

Chapter 2: Cost and Management Accounting 

Overview CHAPTER 2: Visual Overview

2.1 Scope of Traditional 2.1.1 Management Accounting and Financial Accounting

Management Accounting 2.1.2 Comparison

2.1.3 Planning, Control and Decision Making

2.2 Traditional Costing 2.2.0 Introduction

2.2.1 Marginal Costing

2.2.2 Absorption Costing

2.3 Activity-Based Costing 2.3.1 Introduction

2.3.2 Cost Drivers

2.3.3 Steps

2.3.4 Analysis of ABC

2.3.5 Comparison of ABC and Traditional Methods

2.3.6 Use of ABC in the Public Sector

2 Conclusion 2 Syllabus Coverage

 2 Summary and Quiz r
For Exams from September 2024 to June 2025 – (PM) Performance Management    
2 Technical Articles
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Chapter 3: Advances in Management Accounting 
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Overview CHAPTER 3: Visual Overview

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3.1 Developments in 3.1.1 Traditional Management Accounting

Management Accounting 3.1.2 Business Environment Changes

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3.1.3 Growth of Services Industries

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3.1.4 Adding Value and Avoiding Waste

3.1.5 Response of Management Accountants

3.2 Target Costing 3.2.1 Aim and Use

3.2.2 Steps in Target Costing

3.2.3 Application to Service Industries

3.2.4 Narrowing the Target Cost Gap

3.2.5 Topic Explainer Video Target Costing 

3.3 Life-Cycle Costing 3.3.0 Introduction

3.3.1 Product Lifecycle

3.3.2 Costs Involved

3.3.3 Benefits

3.3.4 Relevance to Service Industries

3.4 Throughput Accounting 3.4.1 The Theory of Constraints

3.4.2 Throughput Contribution

3.4.3 Throughput Accounting Ratio ("TPAR")

3.4.4 Topic Explainer Video Throughput Accounting 

3.5 Environmental 3.5.1 Introduction

Accounting 3.5.2 Importance of the Environment for Business

3.5.3 Environmental Management Accounting

3.5.4 Defining Environmental Costs

3.5.5 EMA Techniques

3.6 Sustainability Issues 3.6.1 Accounting for Environmental and Sustainability Factors

3.6.2 Sustainability Strategy Perspectives

3.6.3 Role of Accountants in Developing Sustainable Practices

3 Conclusion 3 Syllabus Coverage

3 Summary and Quiz r

3 Technical Articles

Chapter 4: Relevant Cost Analysis 

Overview CHAPTER 4: Visual Overview

4.1 Relevant Costs 4.1.1 Meaning

4.1.2 Non-relevant Costs

4.2 Opportunity Cost 4.2.1 Definition

4.2.2 Importance

4.2.3 Difficulties in Using Opportunity Costs

4.3 One-Off Contracts 4.3.0 Introduction

4.3.1 Minimum Price

4.3.2 Materials
 4.3.3 Labour
For Exams from September 2024 to June 2025 – (PM) Performance Management    
4.3.4 Non-current Assets
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4.3.5 Non-financial Factors

g Flashcards 4.4 Shut-down Decisions 4.4.1 Relevant Costs

4.4.2 Non-financial Factors

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4.5 Further Processing 4.5.1 Joint Products

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Decisions

 Search 4.6 Make or Buy 4.6.1 Outsourcing

4.6.2 Advantages of Outsourcing

4.6.3 Disadvantages of Outsourcing

4.6.4 Make vs. Buy Decisions

4 Conclusion 4 Syllabus Coverage

4 Summary and Quiz r

4 Technical Articles

Chapter 5: Cost Volume Profit Analysis 

Overview CHAPTER 5: Visual Overview

5.1 CVP Analysis 5.1.1 Objective

5.1.2 Breakeven Point

5.1.3 Simplifying Assumptions

5.2 Charts 5.2.1 Breakeven Chart

5.2.2 Profit-Volume Chart

5.3 Mathematical 5.3.1 Contribution

Approaches 5.3.2 Breakeven Formulae

5.3.3 Contribution/Sales (C/S) Ratio

5.3.4 Margin of Safety

5.4 Multi-Product Analysis 5.4.1 Assumption

5.4.2 Calculation of Breakeven Point

5.4.3 Multi-Product Profit-Volume (PV) Charts

5.5 Limitations in Planning 5.5.1 Simplifying Assumptions

and Decision Making 5.5.2 Multi-Product Situations

5 Conclusion 5 Syllabus Coverage

5 Summary and Quiz r

5 Technical Articles

Chapter 6: Limiting Factor Decisions 

Overview CHAPTER 6: Visual Overview

6.1 Limiting Factors 6.1.1 Limiting Factor Analysis (Key Factor Analysis)

6.1.2 One Limiting Factor

6.1.3 Shadow Price

6.1.4 Throughput Accounting

6.2 Make or Buy 6.2.1 Decisions with a Limiting Factor

6.2.2 Shadow Prices in Make v Buy

6.3 Multi-Limiting Factors 6.3.1 Linear Programming

6.3.2 The Graph

6.3.3 Problem Formulation

6.3.4 Objective Function Method

 6.3.5 Simultaneous Equations Method
For Exams from September 2024 to June 2025 – (PM) Performance Management    
6.3.6 Assumptions

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6.4 Further Considerations 6.4.1 Shadow Price

g Flashcards 6.4.2 Slack

6.4.3 More Than Two Variables

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6 Conclusion 6 Syllabus Coverage

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6 Summary and Quiz r
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6 Technical Articles

Chapter 7: Pricing 

Overview CHAPTER 7: Visual Overview

7.1 Cost-Based Pricing 7.1.1 Full Cost Plus Pricing

Approaches 7.1.2 Marginal Cost Plus Pricing

7.1.3 Return on Investment (ROI) Pricing

7.1.4 Opportunity Cost Pricing

7.1.5 Lifecycle Cost Pricing

7.1.6 Limitations of Cost-Based Approaches

7.2 Economist's Model 7.2.1 Demand Curve

7.2.2 Marginal Revenue

7.2.3 Marginal Cost

7.2.4 Maximising Profits

7.2.5 Summary of Algebraic Method

7.2.6 Tabular Approach

7.2.7 Practical Disadvantages of the Economist's Model

7.2.8 Production and Sales Levels

7.3 Other Pricing Strategies 7.3.1 Market Skimming

7.3.2 Market Penetration

7.3.3 Complementary Product Pricing

7.3.4 Price Discrimination

7.3.5 Loss Leaders

7.3.6 Going-Rate Pricing

7.3.7 Product-Line Pricing

7.3.8 Volume Discounting

7.3.9 Relevant Cost Pricing

7.4 Factors Influencing 7.4.1 Level of Demand

Pricing 7.4.2 Price Elasticity of Demand

7.4.3 Product Lifecycle

7.4.4 Competitors

7.4.5 Customers

7.4.6 Perfect Competition

7 Conclusion 7 Syllabus Coverage

7 Summary and Quiz r

7 Technical Articles

Chapter 8: Risk and Uncertainty 

Overview CHAPTER 8: Visual Overview

 8.1 Decision Making in a 8.1.1 Introduction
For Exams from September 2024 to June 2025 – (PM) Performance Management    
World of Risk 8.1.2 Methods
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8.2 Expected Value (EV) 8.2.1 The Concept

g Flashcards 8.2.2 Profit Tables

8.2.3 Value of Perfect Information

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8.2.4 Value of Imperfect Information
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8.2.5 Decision Trees

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8.2.6 Topic Explainer Video Decision Trees 

8.3 Risk Attitude and 8.3.1 Three Types of Decision-Makers

Decision Rules 8.3.2 Decision Rules

8.4 Sensitivity Analysis and 8.4.0 Introduction

Simulation 8.4.1 Sensitivity Analysis

8.4.2 Simulation

8.5 Reducing Uncertainty 8.5.1 Focus Groups

8.5.2 Market Research

8 Conclusion 8 Syllabus Coverage

8 Summary and Quiz r

8 Technical Articles

Chapter 9: Budgetary Systems and Types of Budget 

Overview CHAPTER 9: Visual Overview

9.1 Objectives of a Budgetary 9.1.1 Introduction

Control System 9.1.2 Objectives

9.1.3 Ethical and Sustainability Considerations

9.2 The Performance 9.2.1 Long-Term Planning

Hierarchy 9.2.2 Mission

9.2.3 Corporate Objectives

9.2.4 Unit Objectives

9.2.5 Setting Strategies

9.2.6 Role of Budgeting in Long-Term Planning

9.2.7 Master Budget

9.2.8 Functional Budgets

9.3 Different Types of 9.3.1 Introduction

Budgetary Systems 9.3.2 Top-Down v Bottom-Up Budgeting

9.3.3 Rolling Budgets (Rolling Forecasts)

9.3.4 Incremental Budgeting

9.3.5 Zero-Based Budgeting (ZBB)

9.3.6 Activity-Based Budgeting (ABB) 

9.3.7 Feedback and Feed-Forward Control

9.4 Information Used in 9.4.1 Aspects of Information Quality

Budgetary Systems 9.4.2 Sources of Data and Information

9.5 Difficulties of Changing a 9.5.1 Traditional Approaches to Budgeting

Budgetary System 9.5.2 Difficulties

9.6 Uncertainty in the 9.6.1 Forecasting

Environment 9.6.2 Flexible Budgets

9.6.3 Flexed Budgets

 9.7 Behavioural Aspects of 9.7.1 Factors Which Influence Behaviour
For Exams from September 2024 to June 2025 – (PM) Performance Management    
Budgeting 9.7.2 Hopwood's Management Styles
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9.7.3 Setting the Level of Difficulty of the Budget

g Flashcards 9.7.4 Benefits and Difficulties of Employee Participation

Quizzes 9.8 Beyond Budgeting 9.8.1 Criticisms of Traditional Budgeting

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9.8.2 Beyond Budgeting Model
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9.8.3 Evaluation of Beyond Budgeting

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9 Conclusion 9 Syllabus Coverage

9 Summary and Quiz r

9 Technical Articles

Chapter 10: Analytical Techniques 

Overview CHAPTER 10: Visual Overview

10.1 Forecasting Methods 10.1.1 Need for Forecasting

10.1.2 Simple Average Growth Models

10.1.3 High-Low Method

10.2 Time Series Analysis 10.2.1 Components of a Time Series

10.2.2 Identifying the Trend

10.2.3 Identifying the Seasonal Variations

10.2.4 Seasonally-adjusted Data

10.2.5 Forecasting Using Time Series Analysis

10.2.6 Benefits and Limitations of Time Series Analysis

10.3 Correlation and 10.3.1 Correlation

Regression 10.3.2 Correlation Coefficient (r)

10.3.3 Coefficient of Determination (r2)

10.3.4 Regression

10.3.5 Benefits and Limitations

10.3.6 Topic Explainer Video Correlation Coefficient & Coefficient of

Determination 

10.4 Learning Curve Theory 10.4.1 The Learning Effect

10.4.2 Tabulation

10.4.3 Learning Curve Formula

10.4.4 Conditions for a Learning Curve to Apply

10.4.5 Applications of Learning Curve Theory

10.4.6 Reservations About the Learning Curve

10.4.7 Steady State

10.4.8 Estimating the Learning Rate

10.4.9 Topic Explainer Video Learning Curve 

10 Conclusion 10 Syllabus Coverage

10 Summary and Quiz r

10 Technical Articles

Chapter 11: Standard Costing 

Overview CHAPTER 11: Visual Overview

11.1 Use of Standard Costs 11.1.1 By Management

11.1.2 Variance Investigation

11.1.3 Uses of Standard Costing Systems

 11.1.4 Examples of Use
For Exams from September 2024 to June 2025 – (PM) Performance Management    
11.1.5 Use of Standards in Budgeting
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11.2 Deriving Standards 11.2.1 Setting Standards

g Flashcards 11.2.2 Ideal Standards

11.2.3 Basic Standards

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11.2.4 Current Standards
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11.2.5 Attainable Standards

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11.2.6 Information Used for Setting Standards

11.3 Controllability 11.3.1 The Principle

11.4 Flexing Budgets 11.4.1 Importance of Flexed Budgets

11.4.2 Usefulness

11 Conclusion 11 Syllabus Coverage

11 Summary and Quiz r

11 Technical Articles

Chapter 12: Basic Variance Analysis 

Overview CHAPTER 12: Visual Overview

12.1 Variance Analysis 12.1.1 Introduction

12.1.2 Sales Variances

12.1.3 Materials Variances

12.1.4 Labour Variances

12.1.5 Variable Overhead Variances

12.1.6 Fixed Overhead Variances

12.1.7 Topic Explainer Video Variance Analysis 

12.2 The Operating 12.2.1 A Reconcilation

Statement
12.3 Marginal Costing 12.3.1 Differences

Approach 12.3.2 Pro-Forma

12.4 Inventory at Actual Cost 12.4.1 Profit with Inventory at Actual Cost

12.4.2 Variances

12.4.3 Accounts

12.5 Causes of Variances 12.5.1 General Causes

12.5.2 Specific Causes

12.5.3 Interdependence of Variances

12 Conclusion 12 Syllabus Coverage

12 Summary and Quiz r

12 Technical Articles

Chapter 13: Advanced Variance Analysis 

Overview CHAPTER 13: Visual Overview

13.1 Materials Mix and Yield 13.1.1 The Concept

Variances 13.1.2 Calculating the Mix Variance

13.1.3 Calculating Yield Variance

13.1.4 Interpreting Material Mix and Yield Variances

13.1.5 Inter-relationship Between Price, Mix and Yield Variances

13.1.6 Wider Issues Relating to Product Mix

13.1.7 Alternative Methods of Controlling Production Processes

 13.2 Sales Mix and Quantity 13.2.1 The Concept
For Exams from September 2024 to June 2025 – (PM) Performance Management    
Variances 13.2.2 Calculating the Sales Mix Variance
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13.2.3 Calculating the Sales Quantity Variance

g Flashcards 13.2.4 Interpreting the Sales Mix and Quantity Variance

Quizzes 13 Conclusion 13 Syllabus Coverage

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13 Summary and Quiz r
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13 Technical Articles

 Search
Chapter 14: Planning and Operational Variances 

Overview CHAPTER 14: Visual Overview

14.1 Revision of Budgets and 14.1.1 Principles

Standards
14.2 Planning and 14.2.1 Problems of Traditional Variance Analysis

Operational Variances 14.2.2 Planning Cost Variances

14.2.3 Learning Curve and Labour Variances

14.2.4 Market Size and Market Share Variances 

14.2.5 Advantages and Disadvantages

14.2.6 Manipulation

14.3 Behavioural Aspects of 14.3.1 Effect on Staff Motivation and Action

Standard Costing 14.3.2 Variances and Performance Evaluation

14.3.3 Relevance of Variances in the Modern Environment of JIT and

TQM

14.3.4 Behavioural Problems in Rapidly Changing Environments

14 Conclusion 14 Syllabus Coverage

14 Summary and Quiz r

14 Technical Articles

Chapter 15: Performance Measurement 

Overview CHAPTER 15: Visual Overview

15.1 Objectives of 15.1.1 Main Objectives of Performance Measurement

Performance Measurement 15.1.2 The Performance Hierarchy

15.1.3 Hierarchy of Objectives

15.2 Financial Performance 15.2.1 Introduction

Indicators (FPIs) 15.2.2 Returns on Capital

15.2.3 Profit Margins

15.2.4 Asset Turnover Ratio

15.2.5 Liquidity Ratios

15.2.6 Gearing

15.2.7 Interest Cover

15.2.8 Approach to Financial Performance Evaluation Exam Questions

15.3 Non-financial 15.3.1 Financial Performance Indicators (FPIs)

Performance Indicators 15.3.2 Key Performance Indicators

(NFPIs)
15.3.3 Operational NFPIs

15.3.4 Advantages of NFPIs

15.3.5 Ways to Improve Performance Indicated by NFPIs

15.3.6 Target Setting in Qualitative Areas

15 Conclusion 15 Syllabus Coverage

 15 Summary and Quiz r
For Exams from September 2024 to June 2025 – (PM) Performance Management    
15 Technical Articles
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Chapter 16: Further Aspects of Performance Analysis 
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Overview CHAPTER 16: Visual Overview

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16.1 The Balanced Scorecard 16.1.1 Introduction

Practice 16.1.2 Balanced Scorecard Philosophy

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16.1.3 Advantages and Disadvantages
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16.2 Service Industries 16.2.1 Characteristics of Service Industries

16.2.2 Fitzgerald and Moon's Building Block Model

16.2.3 Topic Explainer Video Building Block Model 

16.3 Non-profit Sector 16.3.1 Identifying Objectives

16.3.2 Value for Money Objectives

16.3.3 Non-Financial Performance Indicators (NFPIs)

16.3.4 Setting Targets

16.3.5 Assessing Performance

16.3.6 Other Approaches

16.4 External Considerations 16.4.0 Introduction

16.4.1 Stakeholders

16.4.2 Market Conditions and Competitors

16.4.3 Sustainability

16 Conclusion 16 Syllabus Coverage

16 Summary and Quiz r

16 Technical Articles

Chapter 17: Divisional Performance Evaluation 

Overview CHAPTER 17: Visual Overview

17.1 Decentralisation 17.1.0 Introduction

17.1.1 Benefits

17.1.2 Problems

17.1.3 Conditions for Successful Decentralisation

17.2 Divisional Performance 17.2.1 Measurement Characteristics

Evaluation 17.2.2 Possible Measures

17.2.3 Controllable and Traceable Profit

17.3 Return on Investment 17.3.0 Introduction

(ROI) 17.3.1 Calculations

17.3.2 Components of Capital

17.3.3 Advantages of ROI

17.3.4 Disadvantages of ROI

17.4 Residual Income 17.4.0 Introduction

17.4.1 Calculations

17.4.2 Advantages

17.4.3 Disadvantages

17 Conclusion 17 Syllabus Coverage

17 Summary and Quiz r

17 Technical Articles
 
For Chapter 18: Transfer
Exams from SeptemberPricing
2024 to June 2025 – (PM) Performance Management    
Overview CHAPTER 18: Visual Overview
k Chapters
18.1 Transfer Pricing 18.1.0 Introduction

g Flashcards
18.1.1 When Needed

v Quizzes 18.1.2 Objectives of Transfer Pricing

18.2 Opportunity Cost 18.2.1 Supplying Division Perspective

r Practice
Approach 18.2.2 Buying Division Perspective
 Search
18.2.3 Economic Transfer Price Rule

18.3 Practical Approaches 18.3.1 Market Price Method

18.3.2 Full Cost Plus

18.3.3 Variable Cost Plus

18.3.4 Marginal Cost

18.3.5 Incongruent Goal Behaviour

18.4 Dual Pricing 18.4.1 An Intervention

18 Conclusion 18 Syllabus Coverage

18 Summary and Quiz r

18 Technical Articles

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