Performance Management (PM)

Develop skills in applying management accounting techniques to quantitative and qualitative information for planning, decision-making, performance evaluation, and control.

Skill Level Essential Paper Global Pass Rate: 42%

About PM

Performance Management (PM) teaches you how to apply management accounting techniques to quantitative and qualitative information for planning, decision-making, performance evaluation, and control.

PM builds on the knowledge gained in Management Accounting (MA) and prepares you for more advanced capabilities in Strategic Business Leader (SBL). You'll learn how to make strategic planning and control decisions to optimize performance, including the use of data analytics and emerging technologies in performance management.

Why PM is Important

PM is crucial for finance professionals as it provides the skills needed to:

Use planning and control systems to optimize performance
Identify and evaluate design features of effective performance management information and monitoring systems
Apply appropriate strategic performance measurement techniques in evaluating and improving organizational performance
Advise on and implement effective business performance management processes

Exam Details

Duration: 3 hours

Pass Mark: 50%

Availability: March, June, September, December

Format: Computer-based exam

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PM Syllabus Areas

Specialist Cost and Management Accounting Techniques

Activity-based costing
Target costing
Life-cycle costing
Throughput accounting
Environmental accounting

Decision-Making Techniques

Relevant cost analysis
Cost-volume-profit analysis
Limiting factors
Pricing decisions
Make-or-buy and other short-term decisions

Budgeting and Control

Budgetary systems and types of budgets
Quantitative analysis in budgeting
Standard costing
Material, labour, and overhead variances
Mix and yield variances

Performance Measurement and Control

Performance management information systems
Sources of management information
Data analytics in performance management
Cost reduction and value enhancement
Monitoring performance and quality management

Performance Measurement Systems and Design

Strategic performance measures in private sector
Divisional performance and transfer pricing
Performance analysis in not-for-profit organizations
External considerations and behavioural aspects
Balanced scorecard and performance pyramids

Recent Developments

Digital technologies in performance management
Big data and data analytics
Artificial intelligence in performance measurement
Environmental, social, and governance (ESG) factors
Modern performance management frameworks

Professional Skills Developed

Strategic Planning

Ability to develop and implement strategic plans to optimize organizational performance

Cost Management

Skills to apply specialist cost and management accounting techniques

Decision Making

Ability to use relevant information for effective decision-making

Performance Measurement

Skills to design and implement effective performance measurement systems

Analytical Thinking

Ability to analyze quantitative and qualitative information for performance evaluation

Data Analytics

Skills to apply data analytics techniques in performance management