ACCA PM case studies
ACCA PM · Put your knowledge to work in context.
Performance Management (PM) is one of ACCA's Fundamentals-level exams, positioned after Management Accounting in the qualification sequence. ACCA describes its purpose as developing "knowledge and skills in the application of management accounting techniques to quantitative and qualitative information for planning, decision-making, performance evaluation and control." It suits students who already understand basic costing and want to move into interpreting information for decisions rather than just recording it - typically part-qualified accountants working in or alongside a finance function. The ACCA PM case studies are 5 cases and about 2,695 words.
1The Batch-Size Trap at Corran Foods
Corran Foods produces a single chilled sauce in batches of 500 litres. Each batch incurs a setup cost of 1,800 (mostly cleaning and line changeover labour) and the annual demand is steady at 60,000 litres.
548 words, about 3 min2Relevant Costing on the Kelmarsh Contract
Kelmarsh Engineering is bidding for a one-off contract requiring 400 kg of material Z and 120 skilled labour hours. Material Z is currently held: 250 kg in stock (originally bought at 12/kg, current replacement cost 15/kg, scrap value 8/kg) and 150 kg must be bought new.
550 words, about 3 min3Flexed Budget Variances at Pennick Chemicals
Pennick Chemicals budgeted to produce and sell 8,000 tonnes of solvent at a standard price of 210/tonne, using 2.5 kg of raw input per tonne at a standard cost of 14/kg, and 0.4 direct labour hours per tonne at 22/hour. Fixed overhead was budgeted at 96,000.
488 words, about 2 min4Balanced Scorecard Tensions at Harlow Retail
Harlow Retail operates 40 stores. The board has introduced a balanced scorecard with four perspectives and set divisional manager bonuses primarily on the financial perspective.
466 words, about 2 min5Behavioural Budgeting at Ashcombe Services
Ashcombe Services prepares its annual budget by taking last year's actual costs and adding 5%. Department heads submit their own figures, which the finance director then trims by 10% across the board before presenting to the board.
643 words, about 3 min