Tackle paper F5

Here are some guidance on how to pass this paper. This paper is more special and you can't be sure that you can pass by just practising a lot of questions. Generally, you need to have good understanding in each and every topics, and think out of the box when you are attempting a question. Guidance is given for each syllabus area:

A: Specialist cost and management accounting techniques
This is an easy area but don't underestimate it, questions will not just focus on calculations, the theories part of each technique must be understood. For example, question could ask "suggest ways to account for environmental cost for this business", in this case you have to look at the nature of the business and also the size of the business to determine whether the business can afford to install an activity-based costing (ABC) system for example. Other ways include input/outflow analysis, flow cost accounting and life cycle costing. An ability to keep an eye on the information given for the company is essential.

B: Decision-making techniques
Difficult questions will require you to think outside the box while the easy one tests your ability to apply your knowledge such as CVP analysis, identifying relevant cost etc. This area is big and a good understanding is essential to keep you safe.

C: Budgeting
This is probably the easiest area. Learn different budgetary systems, the ability to do simple forecasting and understand learning curve will get you through questions on this area.

D: Standard costing and variance analysis
Try to understand what you are calculating and be able to link variances when evaluating performance will be enough. Normally people are good at calculating variances but not evaluating management performance.

E: Performance measurement and control
This area is probably the hardest in F5. What you need is the overall knowledge and common sense. Calculating ratios are the key skills to learn, also understand them. Tools such as balanced scorecard and building block model must not be ignored. The ability to link your calculated information to the given information is an essential skill.

F5 is a 50% numerical and 50% discursive paper, although most of the time more marks are given for discursive part. People who ignored the theories part of the paper will fail and those who learn will pass confidently. Do not try to predict topics because new examiner knows what you think.