Unofficial practice for the ACCA Performance Management (PM) exam. Not affiliated with or endorsed by ACCA.
Performance management exam prep
ACCA publishes a pass rate for Performance Management after each session. The five most recent, from September 2025 to September 2026, ran from 40% to 45%.
| September 2026 | 42% |
|---|---|
| June 2026 | 41% |
| March 2026 | 45% |
| December 2025 | 40% |
| September 2025 | 43% |
In each of the last five sessions, fewer than half of the candidates passed. The pass mark is 50% and every question is compulsory, so no area of the syllabus can be left out.
Find your weakest topic first, fix it with a short lesson, then practise questions on it. Practise the written Section C questions, where you calculate and then explain what the figures mean, and finish with timed practice exams so the clock feels normal.
Standard costing and variances
Quarrie Co's standard mix for each 10 kg of input is 6 kg of P at $4 a kg and 4 kg of Q at $9 a kg.
In April it used 6,800 kg of P and 3,700 kg of Q.
What is the total material mix variance for April? (2 marks)
| Answer | |
|---|---|
| Variance ($) | |
| Adverse or favourable |
Performance analysis
Belmont Co's revenue is $14,600,000, all on credit, and its cost of sales is $9,125,000. Its purchases equal its cost of sales. Both figures will stay the same next year.
Belmont Co currently holds inventory for 60 days of cost of sales, collects from customers in 50 days of revenue and pays suppliers in 30 days of purchases, on a 365-day year. It plans to cut inventory to 45 days and collection to 40 days, and to pay suppliers in 40 days.
All cash released will reduce Belmont Co's bank overdraft, which costs 7% a year.
By how much will Belmont Co's annual overdraft interest fall if all three plans are achieved? (2 marks)
Relevant costing and short-term decisions
Langdon Co has been asked to quote for a one-off contract. Its minimum price is the contract's total relevant cost. The contract needs:
Material M: 1,000 kg, all held in inventory. It was bought for $3.00 per kg, has no other use and could be sold for $1.20 per kg.
Material N: 400 kg, to be bought at $5.00 per kg.
Labour: 150 hours. The workers have 100 hours of idle time that are paid anyway; the other hours would be overtime at $27 per hour.
Variable overhead: $4.00 per labour hour worked. Fixed overhead: absorbed at $10 per labour hour; total fixed overhead would not change.
Supervision: by a manager already employed on a fixed salary, $3,000 of which would be charged to the contract. The manager would receive no extra pay.
What is the minimum price Langdon Co should quote? (2 marks)
ACCA's PM page shows 42% for September 2026, 41% for June 2026, 45% for March 2026, 40% for December 2025 and 43% for September 2025.
50%. ACCA's study guide says the pass mark for all ACCA Qualification exams is 50%.
Yes. ACCA's study guide says all questions in the PM exam are compulsory.