P2 Performance Management Syllabus

Paper P2 continues the analytic theme of Paper P1 Performance Operations (for example in terms of identifying relevant costs). However, its main focus is on the application of information in the management processes of decision-making and control, from a performance optimising perspective. The first section covers the key contributors to operational performance – revenue; decisions of what to produce, at what price. The second section covers costs; how to manage them to maximise profitability. The role of control in monitoring and improving performance then comes to the fore in the final two sections, dealing with principles and practices in the use of responsibility centres and budgeting.


Syllabus structure
The syllabus comprises the following topics and study weightings:
30% - Pricing and Product Decision

• Relevant Costing and Short-Term Decisions
• Marginal and Absorption Costing
• Pricing
• Linear Programming
• Cost-Volume-Profit

30% - Cost Planning and Analysis for Competitive Advantage
20% - Budgeting and Management Control
20% - Control and Performance Measurement of Responsibility Centres

Assessment strategy
There will be a written examination paper of three hours, plus 20 minutes of pre-examination question paper reading time.

The examination paper will have the following sections:

Section A – 50 marks
Five compulsory medium answer questions, each worth ten marks. Short scenarios may be given, to which some or all questions relate.

Section B – 50 marks
One or two compulsory questions. Short scenarios may be given, to which questions relate.

Full syllabus here