As you are learning
and preparing for the Paper
F5 exam, it is important
to know the preceding papers
that have direct links with
the paper you are studying
since you will be expected to
have the underpinning
knowledge. Paper F5 is directly
underpinned by Paper F2,
Management Accounting
.
The aim of this ar ticle is to
explain the differences between
the Paper F5 syllabus and that
of Paper F2 in order to help you
plan your learning and prepare
well for the exams. If you have
been exempted from Paper
F2, it is vital to understand the
relevant parts of that paper to
plan your learning for Paper F5.
I will provide a link between each
syllabus section in Paper F5 to
the equivalent sections of the
Paper F2 syllabus and highlight
the major differences. I will also
explain other differences you
should be aware of.
F5 vs F2 sYLLABUs
syllabus section A – specialist
cost and management
accounting techniques
Paper F2 syllabus Section B (cost
classification, behaviour and
purpose) and Section D (cost
accounting techniques) introduce
you to costing principles and
conventional management
accounting techniques such as
absorption costing.
Paper F5 takes these concepts
further by exploring more modern
costing techniques such as
activity-based costing, target
costing etc. It is very important
for you to master Section B
and Section D of the Paper F2
syllabus in order to deal with
this section in the Paper F5
syllabus. For example, you cannot
understand backflush accounting
if you are not familiar with
principles of process costing in
Paper F2.
syllabus section B –
decision‑making techniques
This section is linked to Paper F2
syllabus Sections C and F.
Section C introduces you to
business mathematics – an
important tool in management
accounting at all levels. It
also introduces you to the
concept of risk and the use of
expected values.
This concept is broadened
in Paper F5 by further looking
at other techniques in addition
to expected values such as
profit tables, simulation and
sensitivity analysis.
Section F of Paper F2
introduces you to the application
of management accounting in
various decision-making areas.
You will have been introduced
to the identification of limiting
factors and how to plan your
production to maximise profit,
but on the assumption that you
have only one limiting factor
in the period. In Paper F5, you
have to use same concept to
make similar decisions, but it
will assume that you have several
limiting factors in the period
(multi-period limiting factors).
In Paper F2 you will be made
familiar with relevant costing
and CVP in relation to decision
making. In Paper F5 you will
apply these concepts in decisions
such as what price to charge for
products and whether to buy or
make the products in order to
maximise profits.
syllabus section C and D –
budgeting and standard costing
You will have learned about
budgeting and standard costing
principles in Paper F2 syllabus
Section E.
the
between
ReLevAnt to ACCA QUALiFiCAtion PAPeRs F2 AnD F5
PeRFoRmAnCe meAsURement AnD ContRoL is new AnD
onLY intRoDUCeD in PAPeR F5, BUt is UnDeRPinneD BY
ALL the knowLeDge AnD UnDeRstAnDing YoU hAve oF
mAnAgement ACCoUnting in PAPeR F2.
01 teChniCAL
