F5 examiner's past Review

May 2008 article
Key learning points
In summary:
-a ratio alone is not enough

-use the background information given (such as financial data, variances, or narrative)

-hypothesise as to possible causes and be prepared to select the most likely

-be brave and express your opinion

-do not ‘opt out’ and suggest that management investigate.

March 2008 Article
on linear programming
(Why linear programming MOON? Usually when article is written before the exam. it would most likely to come out the next sitting(Dec2008) and not the coming sitting (june 08). however, just go through. Linear programming usually goes with shadow pricing i think.)

Jan 2007 Article
about what is F5 and review on pilot paper.


D07 report
There were many very good scripts produced by the well prepared candidates. However, having personally moderated every marginal candidate, I can say that many of those that failed did not have knowledge of target costing, did not understand budget revisions and could not interpret simple financial data. The decision whether to pass marginal candidates or not hinged on the answers to these questions.

Q1 A Target costing
-The “benefits” of target costing was less well done and this was expected. I am generally interested in why something is done as well as how it is done. This principle will be reflected again in future questions.

-however all should revise high-low as I am disposed to use it again to provide overhead data within a question. High-low was poorly done by large numbers of candidates, which was a little disappointing

Q2 E profit performance
-I see this type of question (the interpretation type) as central to performance management. It is what separates F2 from F5. Candidates need to be better prepared for future questions of this type. The Pilot paper had a similar question to Ties Only in it, which also gave financial and non financial data for a business. If you look at both these questions you should get a clear idea of how future questions will be set.

Q3 D budget revisions
-I would encourage all to briefly consider the ideas behind calculations before mastering the calculations themselves. In part (b) I was looking for arguments in favour and against, few separated their points and all would have scored better had they done so. Marks for any consistent conclusion were given.

-Performance management is not only about the calculations. Candidates must understand what the numbers tell them about the businesses performance.

Q4 B Processing decision
-This was a decision-making question, so existing fixed cost; the existing supervisor cost and the market research were all correctly excluded as sunk cost. I would prefer in future that sunk costs that are correctly omitted from calculations be mentioned as sunk rather than simply ignored. The marking team will then be able to tell whether the sunk cost treatment has been understood or merely forgotten.