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Karen Hornett from BPP's ACCA National Course Design Team provides you with everything you need to know for F5 Key skills

With global pass rates for F5 lower than any of the other ACCA papers it is clear that candidates are struggling

F5 - Key skills required

With global pass rates for F5 lower than any of the other ACCA papers it is clear that candidates are struggling to get to grips with many of the key skills required for this paper.

Knowledge

The priority before sitting an exam must be to master the knowledge required, yet there are several examples where students just haven't done this.
In December 2007 some students spoke about ABC or lifecycle costing when they should have been discussing target costing. In June 2008 some were unable to explain shadow prices, slack and surplus. Clearly many students are being selective about which areas of the syllabus they are studying.
The F5 exam consists entirely of compulsory questions. It is a foolish strategy to ignore sections of the syllabus.

F5 is a higher level paper than F2. Even if you have seen a topic before and were comfortable with it, it will now be examined in a different way or with extra added elements. For example, linear programming (also an F2 topic) was examined in June. The step up here includes elements such as shadow prices, slack and surplus, it should therefore be expected that these new areas will be examined in F5.

Top Tips
* Study the syllabus in its entirety and never omit areas from your studies
* Make sure you understand the "extra" requirements if topics are in both F2 and F5

Answer the question set

This sounds obvious but many students write answers which do not relate exactly to the requirement. Take for example the ABC question in June 08. The requirement was to "explain why the overhead allocations have changed in the way indicated above".

Candidates should have been referring to the specific cost elements in their explanation as to why the product costs had changed. A description of the ABC process and how this differs from absorption costing, however factually accurate, will not gain marks as it is not addressing the specific requirements of the question.

It is important to pay close attention to the verb the examiner uses in the requirements. If a requirement says 'explain' it wants you to do just that. If it says 'comment' it requires an opinion to be stated and marks will be awarded accordingly. If you fail to give an opinion when the requirement is to comment on or to reach a conclusion, those marks cannot be awarded.

Top Tips
* Highlight the key elements of the requirement so that you know what you need to address.
* Draw up a quick plan of items you need to include in order to keep your answers targeted.
* Before moving onto the next question, go back to the requirements and ensure you have answered all the aspects required.

Presentation of answers

Marks cannot be awarded if the examiner cannot follow what you have done.

− Numbers
Think about your layout before starting to write your answer. Answers that are poorly laid out can become cramped, messy and hard to read.
Always adopt a clear layout with workings in a separate section that are cross- referenced to the appropriate place in the answer. In this way marks can be awarded for your method, even if your final answer is wrong.

− Narrative answers
Written answers should be presented using short punchy paragraphs. Leave a line between each point made. This will help keep your answer succinct and will help the examiner to read your points more clearly!
How much is sufficient?
A technique you could use is to explain what you mean in one sentence and then to explain why it matters in another. You should never leave the examiner asking "so what?" or "why?" at the end of your paragraph.
A briefly made point should score a half or 1 mark; whereas an explained point which brings in the "what" or "why" could score a full 2 marks.
Be warned, if that same point is explained in a whole page it is still likely to only score 2 marks. Long-winded paragraphs waste time and can often end up diluting or contradicting your point.
Top Tips
* Always show your workings and make sure they are clearly cross-referenced to the relevant place in your answer
* Take time to plan written answers.
* Write in short punchy paragraphs, one point per paragraph and leave a line between each point raised.
* Review your answers to ensure they address the "what" and "why".
* Practise with a fellow student, reviewing your answers to determine whether you have successfully put your point across.

Application of knowledge

Students must apply their knowledge to the scenarios in the questions. The examiner's style is very much to give a scenario for each question. Within that scenario there are often "clues" which you can use in your answer. The example of the ABC question referred to earlier can be used again here. Merely stating your knowledge of ABC is not appropriate. You need to use that knowledge in light of the scenario given if you are to answer the requirement appropriately.
Top Tips - Try to use the PEA model.
P - make the point
E - explain the point (answer the examiner's "so what?" or "why?")
A - apply the point to the scenario so that it relates to the organisation in the question

Performance Management

Remember, this is not a purely management accounting exam, it is a performance management exam.

In F5 as many marks will come from your interpretation and assessment of given data as from the calculations themselves.
Being able to assess performance is a key skill needed throughout this paper, not just in the performance management section of the syllabus. For example, question 1 in the June 2008 paper was a variance question. However, part (a) did not ask you to interpret the variances but to "comment on the performance of the managers". You should be trying to determine whether a manager has performed well or not. In order to do this, you will need to use all the information in the question as a tool to help you form a rounded opinion.
Top Tips
* Use all the information given to draw your conclusions.
* Check you are relating your answers to performance management.

F5 global pass rates might currently be very low but they needn't be. Following the advice and tops tips in this article will help you to achieve exam success.

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