Free Performance Management practice exam

Sit original Sections A and B with the structure ACCA's study guide describes: 15 objective test questions, then 3 scenarios of 5 questions. Every answer is marked when you hand in, with an explanation for each question.

Our free paper	Sections A and B: 60 marks in 108 minutes
Our Section A	15 questions of 2 marks: multiple choice, multiple response and number entry
Our Section B	3 scenarios, each with 5 questions of 2 marks
Section C	Written questions read by Mia, with no mark, so the paper gives a mark, not a pass or fail

How to use a practice exam

Sit it in one go on the clock: the real exam allows 1.8 minutes a mark, so 108 minutes for Sections A and B.
That leaves about 72 minutes of the real exam for Section C's 2 written questions.
Afterwards, open every question you dropped marks on and read the explanation, then practise that topic.

How it is marked

Each objective test question earns its 2 marks only when the whole answer is right, so a multiple-response question needs every right option ticked and a number entry needs the exact figure. Each question in a Section B scenario is marked on its own.

Before the full paper

If you are not ready for a full timed paper, start with the free diagnostic: one question on every topic, then the topic to fix first.

Try 3 questions

Question 1 · Section A · Syllabus B42 marks

Throughput accounting

Kirby Co makes two products, K and L, which pass through three processes. Direct materials are its only totally variable cost.

	K	L	Hours available
Throughput per unit	$60	$70	-
Annual demand (units)	3,000	2,000	-
Cutting hours per unit	2	3	12,500
Assembly hours per unit	1.5	2	8,200
Finishing hours per unit	1	1	6,000

Kirby Co adds a second assembly shift, giving 1,000 more assembly hours a year. Demand and the other processes' hours are unchanged.

What now limits Kirby Co's output? (2 marks)

Assembly, which remains the bottleneckDemand for the products, since each process now has spare hoursCutting, as it needs the most hours in totalCutting, because it now needs 12,000 hours, more than any other process

Question 2 · Section A · Syllabus D22 marks

Forecasting techniques

Arden Co's production overheads and machine hours for the last five months were:

4,200 hours, $61,900; 6,800 hours, $84,100; 5,100 hours, $66,300; 3,600 hours, $53,800; 7,200 hours, $82,600.

Arden Co splits its overheads into fixed and variable parts with the high-low method.

What are the expected production overheads for a month with 6,000 machine hours? (2 marks)

Question 3 · Section A · Syllabus B22 marks

Target costing

Cowling Co is designing a new product. Market research shows it will sell for $140 a unit, and Cowling Co requires a profit margin of 25% of the selling price. The current design is estimated to need $46 of materials and 2.5 hours of labour a unit. Labour costs $16 an hour, and variable overheads of $12 an hour vary with labour hours. Fixed overheads are general and not charged to the product for this purpose.

What is the cost gap per unit for the current design? (2 marks)

Next step

Start the free timed exam Take the free diagnostic Start the free course tour

ACCA's Performance Management exam resources page

Questions people ask

Is there a free ACCA PM mock exam?

Yes. Practice exam 1 here is free: original Sections A and B, 60 marks on the clock, marked with an explanation for every question. It is unofficial practice, not an ACCA paper.

Does ACCA provide practice material?

ACCA says its Study Hub, with practice and revision questions, is free to students through MyACCA.

How many marks do I need to pass?

50 of the 100 marks, across all three sections.