P5 Exam tips from BPP, Kaplan and First Intuition – June 2011 sitting

BPP

Performance analysis:
The new examiner has indicated that his questions will require more skill in interpreting data and discussing strategies to improve performance rather than performing calculations. You may be asked to analysis performance vs budget to identify underlying problems that a company needs to address. This analysis could include the use of activity-based approaches, learning curves or non-financial performance measures.
‘Beyond budgeting’ is an important area that can be tested either as a discussion or a numerical question.
Performance appraisal requires effective information systems, expect to be asked to identify the key strategic, tactical and operational information requirements of a business.

Risk analysis:
Analysis of the risk of a new proposal could include numerical techniques such as expected values and probabilities; but strategic frameworks such as PEST analysis could feature here.

Strategic performance measures in the private sector:
Divisional performance measurement is another key area; ROI, RI , EVA, NPV or even cost of quality could feature here and transfer pricing could feature as an aspect of these questions. Modified IRR is new to the syllabus so make sure that you are comfortable with this area.

Reward systems:
HR issues are new to the syllabus from June 2011; the examiner is interested in the impact of reward systems on performance management.

Alternative views of performance measurement:
Questions are commonly set that require a good understanding of the balanced scorecard, the building blocks model and the performance pyramid. Questions will often require you to analyse data that has been collected using one of these models. These models were not tested in December 2010.

Performance hierarchy:
Linking strategic decisions to mission statements or suggesting strategic options using models such as Ansoff’s matrix or the BCG matrix lend themselves to questions containing a mixture of financial and discursive elements that could easily include a simple NPV or profit analysis.

First intuition

Transfer pricing and divisional performance
Quality and quality costs
Performance measures linked to corporate strategy
Risk attitudes
Mission and objectives
Financial and non-financial performance assessment

Kaplan tips

• Divisional performance appraisal.
• Non-financial performance indicators.
• Public sector appraisal and league tables.
• Probabilities and expected values.

source – PQ Magazine
https://www.pqaccountant.com/

best of luck with exam!
ansi