For Exams from September 2024 to June 2025 – (PM) Performance Management 
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Chapter 1: Management Information Systems and Data Analytics
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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
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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
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2 Summary and Quiz
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2 Technical Articles
Chapter 3: Advances in Management Accounting
Overview
CHAPTER 3: Visual Overview
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
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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
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4.3.3 Labour
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4.3.4 Non-current Assets
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4.3.5 Non-financial Factors
4.4 Shut-down Decisions
4.4.2 Non-financial Factors
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4.4.1 Relevant Costs
4.5 Further Processing
4.5.1 Joint Products
Decisions
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
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4 Technical Articles
Chapter 5: Cost Volume Profit Analysis
Overview
CHAPTER 5: Visual Overview
5.1 CVP Analysis
5.1.1 Objective
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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
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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
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6.3.5 Simultaneous Equations Method
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6.3.6 Assumptions
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6.4 Further Considerations
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6.4.2 Slack
6.4.3 More Than Two Variables
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6.4.1 Shadow Price
6 Conclusion
6 Syllabus Coverage
6 Summary and Quiz
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6 Technical Articles
Chapter 7: Pricing
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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
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7 Technical Articles
Chapter 8: Risk and Uncertainty
Overview
CHAPTER 8: Visual Overview
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8.1 Decision Making in a
8.1.1 Introduction
World of Risk
8.1.2 Methods
8.2 Expected Value (EV)
8.2.1 The Concept
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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
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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
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9.7 Behavioural Aspects of
9.7.1 Factors Which Influence Behaviour
Budgeting
9.7.2 Hopwood's Management Styles
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9.7.4 Benefits and Difficulties of Employee Participation
9.8 Beyond Budgeting
9.8.1 Criticisms of Traditional Budgeting
9.8.2 Beyond Budgeting Model
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9.7.3 Setting the Level of Difficulty of the Budget
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9.8.3 Evaluation of Beyond Budgeting
9 Conclusion
9 Syllabus Coverage
9 Summary and Quiz
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9 Technical Articles
Chapter 10: Analytical Techniques
Overview
CHAPTER 10: Visual Overview
10.1 Forecasting Methods
10.1.1 Need for Forecasting
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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
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10 Technical Articles
Chapter 11: Standard Costing
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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 
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11.1.5 Use of Standards in Budgeting
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11.2 Deriving Standards
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11.2.1 Setting Standards
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
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11 Technical Articles
Chapter 12: Basic Variance Analysis
Overview
CHAPTER 12: Visual Overview
12.1 Variance Analysis
12.1.1 Introduction
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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
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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
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13.2 Sales Mix and Quantity
13.2.1 The Concept
Variances
13.2.2 Calculating the Sales Mix Variance
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13.2.4 Interpreting the Sales Mix and Quantity Variance
13 Conclusion
13 Syllabus Coverage
13 Summary and Quiz
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13.2.3 Calculating the Sales Quantity Variance
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Chapter 14: Planning and Operational Variances
Overview
CHAPTER 14: Visual Overview
14.1 Revision of Budgets and
14.1.1 Principles
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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
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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
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15 Summary and Quiz
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Chapter 16: Further Aspects of Performance Analysis
Overview
CHAPTER 16: Visual Overview
16.1 The Balanced Scorecard
16.1.1 Introduction
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16.1.2 Balanced Scorecard Philosophy
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15 Technical Articles
16.1.3 Advantages and Disadvantages
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
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16 Technical Articles
Chapter 17: Divisional Performance Evaluation
Overview
CHAPTER 17: Visual Overview
17.1 Decentralisation
17.1.0 Introduction
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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
17 Technical Articles
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18: Transfer
Pricing
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Overview
CHAPTER 18: Visual Overview
18.1 Transfer Pricing
18.1.0 Introduction
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18.1.1 When Needed
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18.1.2 Objectives of Transfer Pricing
18.2 Opportunity Cost
18.2.1 Supplying Division Perspective
Approach
18.2.2 Buying Division Perspective
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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
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18 Technical Articles
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