acca p5 gtg question bank - 2011
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P5 ADVANCED PERFORMANCE
A GTG Get Through Guides
Edition 3,Version 1
ISBN No. 978-1-84808-250-2
Get Through Guides Ltd. Unit - 2. 308A Melton Road Leicester LE47SL United Kingdom
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The publisher is grateful to the Association of Chartered Certified Accountants for permission to reproduce past examination questions. The answers to past examination questions have been prepared by Get Through Guides Ltd.
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Get Through Guides 2011
P5 - A D V A N C E D P E R F O R M A N C E M A N A G E M E N T (INT)
About the paper 1 - vi
Quest ion number Topic Name Marks Page Numbers
l Quest ion
bank Solut ion I
Section A Strategic Planning and Control 1 Strategic Management Accounting 25 1 - 1 45-47
2 Zero Based Budgeting National Electronics Ltd 20 1 - 1 47- 49
3 Beyond Budgeting Model Hope and Fraser 20 2 - 2 4 9 - 5 1
4 Strategic planning Diverse Holdings Pic 20 2 - 3 52-53
5 External environment 20 3 - 3 54- 56
Section B External Influences on Organisational Performance 6 Ethical issues and Mendelow's matrix Toyworld Ptc 20 5 - 6 57 -59
Section C Performance Measurement System and Design 7 Contingency theory. BPR 20 7 - 7 61 -63
8 Behavioural aspects in performance measurement Astrodome Sports Ltd 20 7 - 8 63 -65
9 Internal and external aspects of performance measurement Ochilpark Pic 35 8 - 9 65 -68
10 Information requirement Moffat Ltd 20 1 0 - 1 0 68 -70
11 Benchmarking and information system IN A Ltd 20 10- 10 71 -73
Section D Strategic Performance and Measurement 12 Mission Statement 20 11 - 11 75 -76
13 Usage of standards in decision-making 15 11 - 11 77-78
14 Performance analysis Sunflower Hospital 35 11 - 13 78 -80
15 Evaluation of strategies 40 13 -14 8 0 - 8 5
16 Strategic performance measurement Big Bucks Bank Pic 40 14 - 16 85 -88
17 Measures of performance 20 1 6 - 1 6 88 -91
18 Performance analysis Taliesin Ltd 20 17- 18 91 - 94
19 Strategic performance measurement Pack and Dispatch Co 20 1 8 - 1 9 9 4 - 9 5
20 Measures of performance Tannadens Division 35 1 9 - 2 0 9 5 - 9 7
21 Divisional performance Galaxy pic and Milky-way group 25 2 0 - 2 1 97-101
P5 - A D V A N C E D P E R F O R M A N C E M A N A G E M E N T (INT)
Quest ion number Topic Name Marks Page Numbers I
Ques t ion bank
Solut ion bank
SGCtion D Strategic Performance and Measurement - Continued 22 Divisional performance NAW Group 40 2 2 - 2 4 102-108
23 Product Vs. Customer profitability NAW Group 20 2 4 - 2 5 109-112
24 Transfer pricing- Able and Baker 20 25- 26 113-115
25 Transfer pricing - Alpha and Beta division 6 2 6 - 2 6 115-117
26 Not-for-profit organisation AVand BW 20 26- 28 117-119
27 Not-for-profit organisation GA and EA 40 2 8 - 3 0 120-124
28 Behavioural aspects of performance management 15 3 0 - 3 0 124-125
29 Performance measurement Sportstown and Totaleisure 40 3 0 - 3 2 126-130
Section E Performance Evaluation and Corporate Failure 30 Balanced scorecard and Building blocks 20 3 3 - 3 3 131 - 132
31 Performance measurement systems 15 3 3 - 3 3 132-134
32 Key performance indicators The Eatwell Restaurant 20 3 3 - 3 4 134-135
33 Performance measurement BLA Ltd 20 3 4 - 3 5 136-139
34 Performance measurement Compuaid Ltd 35 3 5 - 3 6 140-145
35 Performance measurement Mack-King 20 3 7 - 3 8 145-149
36 Performance measurement The Dental Health Partnership 20 38 - 39 149-153
37 Performance measurement Alisha Pic 40 4 0 - 4 1 153-157
38 Corporate failure Fashion Plus 25 41 - 4 2 157-159
q a- p Current Developments and Emerging Issues in Performance oeciion r Management 39 Contemporary management accounting techniques 20 4 3 - 4 3 161-164
40 Traditional vis-a-vis modern management accounting 15 4 4 - 4 4 164-165
Appendix I Present Value Table 1 - 1
[Annuity Table 1 - 1 | Total Page Count:176|
The examination will be a three hour paper in two sections:
Section A will comprise two compulsory questions comprising between 50 and 70 marks in total. Each question will comprise of between 25 and 40 marks
In section B candidates will be asked to answer two from three questions comprising of between 15 and 25 marks each
Total 100 marks
Reading and planning time
For all three hour examination papers. ACCA has introduced 15 minutes reading and planning time.
This additional time is allowed at the beginning of each three-hour examination to allow candidates to read the questions and to begin planning their answers before they start writing in their answer books. This time should be used to ensure that all the information and exam requirements are properly read and understood.
Dunng reading and planning time candidates may only annotate their question paper. They may not write anything in their answer booklets until told to do so by the invigilator.
Effective time management - a key to success
Remember you have 1.8 minutes per mark. Aim to solve a 20 marks question in 36 minutes.
About the GTG Question Bank
This Question Bank of 40 questions covers all important topics of the syllabus.
The Solution Bank has the following features, in addition to solutions to the questions:
Strategy to help you tackle the question Callouts and tips to give you additional guidance
Score More where students lose marks even when they have the required knowledge and notes how to avoid these mistakes Answer plan to help you plan the answers for longer questions
QUESTION B A N K
J L Z o p o
STRATEGIC PLANNING AND MX Z o p o CONTROL Ui (O
1. Strategic management accoun t ing
(a) Identify and discuss the circumstances that have brought about the proposition that traditional management accounting control systems have lost their 'relevance' to today's manufacturing and organisational environment.
(b) Evaluate strategic cost management initiatives which may be used in order to restore the 'relevance' of management accounting control systems in today's manufacturing and organisational environment.
(15 marks) (25 marks)
(Adapted from June 2004)
2. Zero Base Budget ing - Nat ional E lect ron ics L td
National Electronics Ltd manufactures and markets a range of electronic office equipment. The company currently has a turnover of $50 million per annum. The company has a functional structure and currently operates an incremental budgeting system. The company has a budget committee that is comprised entirely of members of the senior management team.
No other personnel are involved in the budget-setting process.
Each member of the senior management team has enjoyed an annual bonus of between 12% and 24% of their annual salary for each of the past five years. The annual bonuses are calculated by comparing the actual costs attributed to a particular function with budgeted costs for that function during the twelve month period ended 31 December in each year.
A new Finance Director, who previously held a senior management position in a "not for profit' health organisation, has recently been appointed. Whilst employed by the health service organisation, the new Finance Director had been the manager responsible for the implementation of a zero-based budgeting system which proved highly successful.
(a) As the new Finance Director, prepare a memorandum to the senior management team of National Electronics Ltd which identifies and discusses:
(i) factors to be considered when implementing a system of zero-based budgeting within National Electronics Ltd;
(ii) the behavioural problems that the management of National Electronics Ltd might encounter in implementing a system of zero-based budgeting, recommending how