http://freeaccastudymaterial.blogspot.com/ co m/ log sp o t l.b ria ate ym tud ACCA Approved Study Text as Paper P5 Advanced Performance Management Study Text for exams up to June 2015 Free access to our Exam Success site Look inside cc For exams up to June 2015 BPP House 142-144 Uxbridge Road London W12 8AA United Kingdom T 0845 075 1100 (UK) T +44 (0)20 8740 2211 (Overseas) E Learningmedia@bpp.com bpp.com/learningmedia • A user-friendly format for easy navigation • Exam focus points describing what the examining team will want you to • Regular Fast Forward summaries emphasising the key points in each chapter • Questions and quick quizzes to test your understanding • A practice question bank containing exam- standard questions with answers • A full index • All you need in one book Study Text Contact us In addition to ACCA examining team reviewed material you get: ea Paper P5 Advanced Performance Management This ACCA Study Text for Paper P5 Advanced Performance Management has been comprehensively reviewed by the ACCA examining team This review guarantees appropriate depth and breadth of content and comprehensive syllabus coverage Advanced Performance Management BPP Learning Media is dedicated to supporting aspiring business professionals with top-quality learning material as they study for demanding professional exams, often whilst working full time BPP Learning Media’s commitment to student success is shown by our record of quality, innovation and market leadership in paper-based and e-learning materials BPP Learning Media’s study materials are written by professionally qualified specialists who know from personal experience the importance of top-quality materials for exam success ACCA P5 ACCA approved content provider ACCA APPROVED CONTENT PROVIDER htt p:/ /fr e June 2014 £32.00 http://freeaccastudymaterial.blogspot.com/ ACP5ST14 (HO).indd 1-3 27/05/2014 17:43 co m/ http://freeaccastudymaterial.blogspot.com/ log sp o t S T U D Y ria l.b PAPER P5 ym ate ADVANCED PERFORMANCE MANAGEMENT tud BPP Learning Media is an ACCA Approved Learning Partner – content This means we work closely with ACCA to ensure this Study Text contains the information you need to pass your exam In this, ACCA examination-team reviewed Study Text we: Highlight the most important elements in the syllabus and the key skills you need  Signpost how each chapter links to the syllabus and the study guide  Provide lots of exam focus points demonstrating what is expected of you in the exam  Emphasise key points in regular fast forward summaries  Test your knowledge in quick quizzes  Examine your understanding in our practice question bank  Reference all the important topics in our full index ea cc as  /fr e BPP's Practice & Revision Kit and i-Pass products also support this paper htt p:/ FOR EXAMS IN DECEMBER 2014 AND JUNE 2015 http://freeaccastudymaterial.blogspot.com/ T E X T log sp o t co m/ http://freeaccastudymaterial.blogspot.com/ First edition 2007 Seventh edition June 2014 All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of BPP Learning Media Ltd ISBN 9781 4727 1089 Previous ISBN 9781 4453 9657 eISBN 9781 4453 6744 We are grateful to the Association of Chartered Certified Accountants for permission to reproduce past examination questions The suggested solutions in the practice answer bank have been prepared by BPP Learning Media Ltd, unless otherwise stated British Library Cataloguing-in-Publication Data l.b A catalogue record for this book is available from the British Library ria Published by ate BPP Learning Media Ltd BPP House, Aldine Place London W12 8AA www.bpp.com/learningmedia Printed in the United Kingdom by tud ym RICOH UK Limited Unit Wells Place Merstham RH1 3LG © BPP Learning Media Ltd 2014 htt p:/ /fr e ea cc as Your learning materials, published by BPP Learning Media Ltd, are printed on paper obtained from traceable sustainable sources ii http://freeaccastudymaterial.blogspot.com/ http://freeaccastudymaterial.blogspot.com/ co m/ Contents Page Introduction v vii xii xiii log sp o t Helping you to pass Studying P5 The exam paper Syllabus and study guide Part A Strategic planning and control Introduction to strategic management accounting Performance management and control of the organisation 43 Business structure, IT developments and other environmental and ethical issues 59 Part B External influences on organisational performance Changing business environment and external factors 123 l.b Part C Performance measurement systems and design Performance management information systems 153 Management information, recording and processing and management reports 187 ria Part D Strategic performance measurement 12 ate Performance hierarchy 223 Scope of strategic performance measures in the private sector 257 Divisional performance and transfer pricing issues 307 Strategic performance measures in not-for-profit organisations 335 Non-financial performance indicators 359 The role of quality in management information and performance measurement systems 379 Performance measurement: strategy, reward and behaviour 429 ym 10a 10b 11 Part E Performance evaluation and corporate failure Alternative views of performance measurement and management 469 Strategic performance issues in complex business structures 509 Predicting and preventing corporate failure 541 tud 13 14 15 16 as Part F Current developments and emerging issues in performance management Current developments, issues and trends 569 599 Practice question bank 603 ea cc Mathematical tables 621 Index 663 /fr e Practice answer bank htt p:/ Review form Contents http://freeaccastudymaterial.blogspot.com/ iii http://freeaccastudymaterial.blogspot.com/ co m/ A note about copyright Dear Customer What does the little © mean and why does it matter? log sp o t Your market-leading BPP books, course materials and e-learning materials not write and update themselves People write them: on their own behalf or as employees of an organisation that invests in this activity Copyright law protects their livelihoods It does so by creating rights over the use of the content Breach of copyright is a form of theft – as well as being a criminal offence in some jurisdictions, it is potentially a serious breach of professional ethics With current technology, things might seem a bit hazy but, basically, without the express permission of BPP Learning Media:  Photocopying our materials is a breach of copyright  Scanning, ripcasting or conversion of our digital materials into different file formats, uploading them to facebook or emailing them to your friends is a breach of copyright ria l.b You can, of course, sell your books, in the form in which you have bought them – once you have finished with them (Is this fair to your fellow students? We update for a reason.) Please note the e-products are sold on a single user licence basis: we not supply ‘unlock’ codes to people who have bought them second-hand htt p:/ /fr e ea cc as tud ym ate And what about outside the UK? BPP Learning Media strive to make our materials available at prices students can afford by local printing arrangements, pricing policies and partnerships which are clearly listed on our website A tiny minority ignore this and indulge in criminal activity by illegally photocopying our material or supporting organisations that If they act illegally and unethically in one area, can you really trust them? iv http://freeaccastudymaterial.blogspot.com/ Helping you to pass BPP Learning Media – Approved Learning Partner - content co m/ http://freeaccastudymaterial.blogspot.com/ log sp o t As ACCA’s Approved Learning Partner – content, BPP Learning Media gives you the opportunity to use study materials reviewed by the ACCA examining team By incorporating the examination team’s comments and suggestions regarding the depth and breadth of syllabus coverage, the BPP Learning Media Study Text provides excellent, ACCA-approved support for your studies The PER alert Before you can qualify as an ACCA member, you not only have to pass all your exams but also fulfil a three year practical experience requirement (PER) To help you to recognise areas of the syllabus that you might be able to apply in the workplace to achieve different performance objectives, we have introduced the ‘PER alert’ feature You will find this feature throughout the Study Text to remind you that what you are learning to pass your ACCA exams is equally useful to the fulfilment of the PER requirement l.b Your achievement of the PER should now be recorded in your on-line My Experience record Tackling studying ate Developing exam awareness ria Studying can be a daunting prospect, particularly when you have lots of other commitments The different features of the text, the purposes of which are explained fully on the Chapter features page, will help you whilst studying and improve your chances of exam success Our Texts are completely focused on helping you pass your exam ym Our advice on Studying P5 outlines the content of the paper, the necessary skills you are expected to be able to demonstrate and any brought forward knowledge you are expected to have tud Exam focus points are included within the chapters to highlight when and how specific topics were examined, how they might be examined in the future, and how different topics within the syllabus fit together Using the Syllabus and Study Guide as You can find the syllabus and Study Guide on pages xiii – xxi of this Study Text Testing what you can cc Testing yourself helps you develop the skills you need to pass the exam and also confirms that you can recall what you have learnt htt p:/ /fr e ea We include Questions – lots of them – both within chapters and in the Practice Question Bank, as well as Quick Quizzes at the end of each chapter to test your knowledge of the chapter content Introduction http://freeaccastudymaterial.blogspot.com/ v Chapter features Each chapter contains a number of helpful features to guide you through each topic Topic list Syllabus reference What you will be studying in this chapter and the relevant section numbers, together with ACCA syllabus references log sp o t Topic list Introduction Puts the chapter content in the context of the syllabus as a whole Study Guide Links the chapter content with ACCA guidance Exam Guide Highlights how examinable the chapter content is likely to be and the ways in which it could be examined What you are assumed to know from previous studies/exams FAST FORWARD Summarises the content of main chapter headings, allowing you to preview and review each section easily ria l.b Knowledge brought forward from earlier studies Demonstrate how to apply key knowledge and techniques Key terms Definitions of important concepts that can often earn you easy marks in exams ate Examples When and how specific topics were examined, or how they may be examined in the future Exam focus points ym Formulae that are not given in the exam but which have to be learnt Gives you essential practice of techniques covered in the chapter Case Study Real world examples of theories and techniques A full list of the Fast Forwards included in the chapter, providing an easy source of review ea Chapter Roundup Quick Quiz /fr e Gives you a useful indication of syllabus areas that closely relate to performance objectives in your Practical Experience Requirement (PER) cc as Question tud Formula to learn A quick test of your knowledge of the main topics in the chapter Found at the back of the Study Text with more comprehensive chapter questions Cross referenced for easy navigation htt p:/ Practice Question Bank vi co m/ http://freeaccastudymaterial.blogspot.com/ Introduction http://freeaccastudymaterial.blogspot.com/ http://freeaccastudymaterial.blogspot.com/ co m/ Studying P5 As the name suggests, this paper examines advanced performance management topics and is particularly suited to those who are thinking about a career in management accountancy or are likely to be involved in strategic management decisions log sp o t ACCA expects you to demonstrate a professional approach to all questions – not just presenting information in a professional manner, but also integrating knowledge and understanding of topics from across the syllabus The examining team has stressed that candidates should not expect topics in P5 exams to be examined in isolation One of the major skills you will be expected to demonstrate in the P5 exam is being able to draw on knowledge gained across your studies to date, in order to present complete solutions to relatively broad business issues or problems What P5 is about l.b The syllabus for Paper P5 further develops key aspects and skills introduced in Paper F5, and it draws on aspects of the material about strategic and operational planning and performance covered in Paper P3, Business Analysis ria However, whereas Paper P3 only assesses principles of management accounting as part of the wider analysis of a business situation, Paper P5 could examine aspects of management accounting – such as budgeting or costing techniques – in their own right ate The stated aim of the P5 syllabus is: ‘To apply relevant knowledge, skills and exercise professional judgement in selecting and applying strategic management accounting techniques in different business contexts and to contribute to the evaluation of the performance of an organisation and its strategic development.' tud ym Read this aim carefully You are no longer just a 'number cruncher' drawing up budgets and producing calculations to include management reports You are expected to understand the wider issues that affect organisations These issues are often written about in newspapers and journals such as the Financial Times and the Economist, so it is important you read the financial press to help you identify how the issues you are studying in P5 relate to the real world context as At this level in your studies, you also need to recognise how the subjects you previously studied begin to fit together You need to begin to take a holistic view of an organisation, and to see how the various parts of it and various processes affect overall performance – rather than looking at individual issues in isolation cc Importantly, the P5 exam is likely to also test your ability to assess different approaches to performance management, from a variety of perspectives As well as knowing what the approaches are, you will also need to be able to compare them with one another in the context of a scenario; for example, the comparing the long-term and short-term issues affecting an organisation’s performance Snapshot of the syllabus htt p:/ /fr e ea The syllabus expects you to understand how organisations set their strategy and the external influences that affect strategic plans and operational outcomes You will be expected to evaluate different systems of performance management and apply strategic performance measurement techniques in evaluating and improving performance You may also be expected to advise on strategic performance evaluation and the possibility of corporate failure Finally you need to be aware of the current developments in management accounting and performance management as these affect organisations Introduction http://freeaccastudymaterial.blogspot.com/ vii http://freeaccastudymaterial.blogspot.com/ co m/ There are six parts to the syllabus, as summarised below: Use strategic planning and control models to plan and monitor organisational performance (b) Assess and identify relevant macro-economic, fiscal and market factors and key external influences on organisational performance (c) Identify and evaluate the design features of effective performance management information and monitoring systems (d) Apply appropriate strategic performance measurement techniques in evaluating and improving organisational performance (e) Advise clients and senior management on strategic business performance evaluation and on recognising vulnerability to corporate failure (f) Identify and assess the impact of current developments in management accounting and performance management on measuring, evaluating and improving organisational performance log sp o t (a) We expect most of these capabilities (if not all) to be tested to some extent in every P5 exam l.b What skills are required? ria Look back at the action verbs in the six parts of the syllabus outlined above You are expected to be able to assess, advise and evaluate, as well as to identify and monitor ym ate The need for these skills of assessing, advising and evaluating highlights that, at P5 level, you are expected to have moved beyond merely demonstrating your knowledge of a model or technique, and instead you have to apply that knowledge to practical situations For example, the examiner will expect that, by the time you reach P5, you can already calculate basic financial ratios In P5, though, the examiner will expect you to be able to interpret the information provided by those ratios to understand how an organisation is performing, and to make sensible suggestions (where appropriate) about how its performance could be improved tud The questions set in P5 exams will be based around case study scenarios which describe an organisation, its objectives and its business environment You will need to relate your answers specifically to the scenario given in the question There will be very few marks available for simply describing models or theories Evidence from past exam sittings suggests that candidates who simply learn models and theories, but then not apply their knowledge to the question scenarios, typically score between 20-30% in their P5 exams cc as The P5 paper has a large written element, with well over half the marks being earned for written answers (discussion, analysis, evaluation) rather than calculations Again, this is designed to reflect the position of a qualified accountant working in a business The accountant can expect a number of the routine calculations and figures to be produced by their more junior colleagues, but the accountant should then expect to identify the issues or implications being identified by those figures We have summarised here the skills you are expected to demonstrate in P5 Core knowledge The contents of Paper F5 Performance Management – assumed knowledge brought forward for Paper P5 (b) Numerical skills Those skills demonstrated in Paper F5 You only learn a small number of new mathematical techniques in this paper, but, alongside these, you are also expected to remember those you learnt previously /fr e ea (a) Written skills These are key skills on this paper You will be expected to write reports and notes explaining issues you encounter (d) Analysis and interpretation of question data or calculations The examiner has stressed that candidates will be expected to analyse (not merely calculate) numerical data given in a scenario Wider business awareness or application of skills in a practical context htt p:/ (c) (e) viii Introduction http://freeaccastudymaterial.blogspot.com/ http://freeaccastudymaterial.blogspot.com/ co m/ How to pass The examiner provides a lot of useful feedback in the ‘Examiner's reports’ to past exams This feedback highlights areas where students have struggled in exams, and also indicates the skills the examiner expects candidates to be able to demonstrate The points highlighted in the Examiner’s reports include the following: log sp o t Looking at the post exam guidance can also be useful for reminding yourself about essential areas of exam technique Therefore you are strongly recommended to read these guides which are available in the ‘Qualification resources’ section of ACCA’s website: http://www.accaglobal.com Read questions very carefully and answer the question asked, not the question you hoped had been asked In particular, if a question asks you to ‘evaluate’ or ‘assess’ the usefulness of a performance measure for assessing performance in an organisation, this is not asking you to evaluate or assess the organisation’s performance Instead, the focus of your answer must be on the performance measure itself (b) Answers which consist of rote-learned definitions or explanations with no application to the scenario will score very few marks It is vital that you apply your knowledge to the context described by the question scenario (c) Look at the mark allocation to help you manage your time allocation and plan your answer (d) Read all the parts of the question before you prepare your answer, so that you avoid repeating the same points in answering different parts of the question ria l.b (a) ate We recommend you read the ‘P5 Examiner's approach’ article published in October 2012 and available on ACCA’s website This illustrates how some of the skills required to pass P5 have been tested in recent exam sittings, and provides some useful hints about how to approach the paper Approach to the exam – In the article, the Examiner suggested that the best approach to the exam can be summarised as: Cover the whole syllabus – Candidates often appear to over-concentrate on Section D of the syllabus (strategic performance measurement) However, it is important to understand how, for example the choice of performance measures fits with planning and control structures (Section A of the syllabus) or how well the measures chosen relate to external drivers of performance (Section B of the syllabus) (b) Be prepared to apply your knowledge of syllabus topics to a business scenario – answers which provide lists of rote-learned points (or rote-learned advantages and disadvantages for different techniques and approaches) will not earn sufficient marks to pass a question Candidates will be expected to tailor their knowledge specifically to the situation given in the question scenario (c) Read and answer the question set – Candidates earn marks where their answers are technically correct and relevant to the question asked However, candidates have a tendency to write answers to the question they wish had been asked, rather than the question the examiner actually set This approach scores little or no credit though (d) Add value to the organisation that is being advised – Candidates need to demonstrate their ability to add value by taking data already produced and identifying and analysis the key issues in that data and the commercial implications of it Candidates need to be prepared to analyse numerical data given in a scenario, not merely to perform calculations on it ea cc as tud ym (a) htt p:/ /fr e Importantly, the Examiner’s article also stresses that P5 is a paper about performance management, not simply about performance measurement Whilst it is important for an organisation to measure how well it is performing, this performance measurement takes place within the wider context of strategic planning and control, and is subject to both internal and external factors which can affect performance In Paper P5 you need to be aware of this context and its impact on performance, not simply how an organisation can measure performance Performance management also considers how the management of an organisation Introduction http://freeaccastudymaterial.blogspot.com/ ix http://freeaccastudymaterial.blogspot.com/ co m/ 17 Abbott and Bartram Top tips Even if you not get a question in the exam which concentrates to such an extent on the calculation of non-financial performance indicators, this question provides you with lots of practice in thinking up relevant NFPIs log sp o t It was important to note that each of the company's territories was the responsibility of one salesman, with Abbott being the salesman for territory and Bartram being the salesman for territory Once you had this clear in your mind it should have made part (a)(i) more straightforward Total sales potential is allocated to individual salesmen on the basis of the proportion of the total number of machines requiring the accessories in each territory So, for example, Abbott should be able to achieve 1.65/12.8 of total sales potential Sales penetration is the proportion of potential sales achieved   We have suggested 11 indices in part (a)(ii), although only eight were required for your answer Don't worry if you didn't get the same as us; others might have been equally acceptable Gross margin ((a)(ii)(2)) as a % of sales would not be a suitable measure to evaluate the performance of salesmen Rather, it would be a measure of the profitability of the products sold and the performance of production (production costs) Sales potential (2) Sales penetration (3) Sales potential per account as (ii) ea cc Customers (1) Number of accounts per salesman as a percentage of potential accounts (2) Average sales per customer account (3) Average sales per customer as a percentage of average sales potential per account Average of all nine salesmen Abbott 1.65  $7.1m 12.80 = $915,234 $112,000 $915,234 = 12.2% $915,234 699 = $1,309 Abbott Bartram 0.83  $7.1m 12.80 = $460,391 $123, 000 $460, 391 = 26.7% $460, 391 423 = $1,088 Bartram 3,271 5,965 54.8% 398 699 56.9% 364 423 86.1% $1, 460, 000 3, 271 = $446 $446 $1,190 = 37.5% $112,000 398 = $281 $123,000 364 = $338 $281 $1,309 = 21.5% $338 $1,088 = 31.1% htt p:/ /fr e Average of all nine salesmen $7.1m = $788,889 $1, 460, 000  £788, 889 = 20.6% $788, 889  5, 965 = $1,190 ate (1) ria Sales potential in total is $7.1 million for 20X2 ym (i) tud (a) l.b We have assessed the performance of Bartram in terms of the five headings in (a)(ii) It was not necessary to this but it does ensure that you cover a wide range of performance 654 Practice answer bank http://freeaccastudymaterial.blogspot.com/ http://freeaccastudymaterial.blogspot.com/ Calls made (1) Calls per customer (2) Sales per call Remuneration (1) Remuneration as a % of sales (b) $47,000 1220 $39 11,030 3,271 = 3.4 $1,460,000 11,030 = $132 1,450 398 = 3.6 1,220 364 = 3.4 $112,000 1,450 = $77 $123,000 1,220 = $101 $82,385 $1,460,000 = 5.6% 1.5% $8,780 $112,000 = 7.8% 1.5% $7,845 $123,000 = 6.4% 1.5% 1.9% $2.54 ate Expenses (1) Expenses as a % of sales (2) Expenses per call $39,000 1450 $27 ria (2) Commission % (workings not shown) $47,000 364 = $129 log sp o t Gross margin per call $39,000 398 = $98 l.b (2) $498,000 3,271 = $152 $498,000 11,030 = $45 co m/ Gross margin (1) Gross margin per customer 1.7% 2.6% $1.34 $2.62 Assessment of performance of Bartram for 20X2 General (i) ym Despite gaining 41 customers in the year, increasing calls made by 5%, and gross margin by $195 per customer, his results are below average, with net margin 18% below the average of the other salesmen (ii) tud However, the market potential of his area is relatively low Customers Gross margin cc (iii) as Despite the low market potential he increased the number of his customers by 13% despite an overall fall in the UK of 1% However, he is selling to 85% of potential by 20X2, which compares favourably with the 20X2 UK average of 55% and his own 20X1 figure of 75% Consequently his sales penetration of 27% is well above the UK average of 21% These were below the UK averages of $152 per customer, and $45 per call Calls made ea (iv) Sales per call were below the UK average although calls as a percentage of customers was around the average htt p:/ /fr e (v) Remuneration and expenses Both salary and total remuneration were below the UK average as were his remuneration per call Expenses per call were average Practice answer bank http://freeaccastudymaterial.blogspot.com/ 655 http://freeaccastudymaterial.blogspot.com/ co m/ 18 NewsPrint Co Top tips You should have been able to identify a number of characteristics in the scenario which could be indicators of corporate failure For example, falling profitability and sales volume could be symptoms of corporate decline, while an autocratic Chief Executive is a defect log sp o t Importantly, you should address both financial and non-financial issues, but you also need to consider external factors as well as internal ones For example, where is the industry in its lifecycle? Note, however, that many of the indicators in the scenario not necessarily mean that the company will fail, and you should acknowledge this in your evaluation Declining market share: Five years ago, NPC was the market leader, holding a 29% of the newspaper market in its country However, its market share has fallen to 21%, and it is no longer the market leader NPC has seen a decline in its share of the market of 8% in years, which should be a cause for concern However, by itself this does not mean indicate the NPC is going in danger of corporate failure l.b Late entry into online market: NPC’s late entry into the online (digital) newspaper market seems to have had a significant impact on NPC’s revenues and market share However, it is not clear whether NPC will be able to regain this market share now that it has developed digital versions of its papers, or whether the loss of market share is permanent If the loss of market share proves to be temporary, then it is not an indicator that NPC is danger of corporate failure ria There are several other performance indicators (both financial and non-financial) which NPC could analyse to assess the risk of corporate failure: Financial indicators ym ate Declining revenues: NPC has suffered a $37m (10%) fall in revenues in the years from 20X4 to 20X9 As with the loss of market share, this downward trend will become a major cause for concern if it continues However, part of the decline may be attributable to a downturn in advertising revenues in the recession which is currently affecting NPC’s country The scenario does not indicate how much of NPC’s revenues come from advertising and therefore how much of the fall in revenue can be attributed to the downturn in advertising revenues However, this downturn will hopefully only be temporary and so should not, by itself, be treated as an indicator of corporate failure as tud Profit margin: Given the fall in revenue, and the loss of market share in a slow growing market, we would expect NPC’s operating profit to have fallen over the period 20X4 - 20X9 However, operating profits have fallen by 16%, which is greater than the fall in revenues, and consequently the profit margin has fallen from 22.5% to 20.8% This fall in profit margin is a serious concern for NPC However, if the new IT systems deliver the efficiencies and cost savings which are expected, then this should help improve the profit margin If they not, though, and margins continue to fall, this could ultimately lead to NPC becoming loss-making cc Cash flows and net debt: The ratio of cash flow to net debt has been suggested as a useful indicator of the likelihood of corporate failure NPC’s ratio has fallen from 0.26 (46/175) to 0.23 (45/195) over the period, so this could be a cause for concern ea However, although NPC’s total debt has increased by $20m over the period, we know it borrowed an additional $30m to pay for the new IT systems in 20X8 Without this additional loan, NPC’s total debt would have actually fallen $10m over the period in which case the ratio in 20X9 would have increased slightly to 0.27 (45/165) htt p:/ /fr e Moreover, NPC appears to be managing its cash flows quite successfully Despite the fall in revenue and operating profits, net cash flow from operations has remained largely the same between 20X4 and 20X9 Tight management of working capital and cash flows should be seen of indicators that the company is being well run, which may in turn lower the risk of corporate failure 656 Practice answer bank http://freeaccastudymaterial.blogspot.com/ http://freeaccastudymaterial.blogspot.com/ co m/ Non-financial indicators Stage in life cycle – The market for printed newspapers in NPC’s country appears to be, at least, in the mature phase of its lifecycle, with the likelihood that it is about to enter the decline phase if it has not already done so The low growth rates in the market suggest it will be hard for NPC to increase revenues significantly within this market log sp o t However, the market research figures only relate to the printed newspapers It is likely that the market for digital media (eg iPads, tablets) will be growing and so NPC may be able to achieve more significant growth in this area of its business In this respect, rather than looking at the business as a whole it may be more useful to separate it into two business units Printed papers have been a cash cow, but have now become dogs, while digital media are more likely to be question marks If NPC can successfully grow its digital media operations and the associated advertising (and possibly subscription) revenues, this will reduce the risk of corporate failure Lack of innovation – In this respect, NPC’s late entry into the digital market should be a cause for concern Although it appears to be primarily a result of the Chief Executive’s reluctance to enter the market, it may also be an indicator that NPC is less innovative than some of its rivals As the newspaper market becomes increasingly digitalized, innovation and change are likely to become increasingly important If NPC is consistently left behind by its rivals then this could increase the risk of its failing ate ria l.b Autocratic Chief Executive – The presence of an Autocratic Chief Executive in a company is often seen as a major corporate defect which can lead to corporate failure In this case, NPC’s failure to develop online newspapers at the same time as its competitors appears to be the result of an Autocratic Chief Executive ignoring the views of the other directors The Chief Executive seems to have resisted the move in line with his personal views, despite the rest of the Directors all being keen that NPC should develop online versions of its newspapers If the Chief Executive’s approach to this issue is characteristic of the way he runs the company, this is perhaps the strongest of all the indicators in the scenario as to why NPC may fail as a corporate entity ym 19 JIT (a) tud Top tips This is a nice, straightforward question There are no ambiguities in the requirements, you simply have to discuss features and state benefits In the exam you would probably only need to provide five (relevant) financial benefits in part (b) to gain the full five marks Make sure that you cover also list limitations of JIT JIT production systems will include the following features Multiskilled workers ea cc as In a JIT production environment, production processes must be shortened and simplified Each product family is made in a workcell based on flowline principles The variety and complexity of work carried out in these work cells is increased (compared with more traditional processes), necessitating a group of dissimilar machines working within each work cell Workers must therefore be more flexible and adaptable, the cellular approach enabling each operative to operate several machines Operatives are trained to operate all machines on the line and undertake routine preventative maintenance Close relationships with suppliers htt p:/ /fr e JIT production systems often go hand in hand with JIT purchasing systems JIT purchasing seeks to match the usage of materials with the delivery of materials from external suppliers This means that material inventories can be kept at near-zero levels For JIT purchasing to be successful this requires the organisation to have confidence that the supplier will deliver on time and that the supplier will deliver materials of 100% quality, that there will be no rejects, returns and hence no consequent production delays The reliability of suppliers is of utmost importance and hence the company must build up close relationships with their suppliers This can be achieved by doing more business with fewer suppliers and placing long-term orders so that the supplier is assured of sales and can produce to meet the required demand Practice answer bank http://freeaccastudymaterial.blogspot.com/ 657 http://freeaccastudymaterial.blogspot.com/ co m/ Machine cells log sp o t With JIT production, factory layouts must change to reduce movement of workers and products Traditionally machines were grouped by function (drilling, grinding and so on) A part therefore had to travel long distances, moving from one part of the factory to the other, often stopping along the way in a storage area All these are non-value-added activities that have to be reduced or eliminated Material movements between operations are therefore minimised by eliminating space between work stations and grouping machines or workers by product or component instead of by type of work performed Products can flow from machine to machine without having to wait for the next stage of processing or returning to stores Lead times and work in progress are thus reduced Quality Production management within a JIT environment seeks to both eliminate scrap and defective units during production and avoid the need for reworking of units Defects stop the production line, thus creating rework and possibly resulting in a failure to meet delivery dates Quality, on the other hand, reduces costs Quality is assured by designing products and processes with quality in mind, introducing quality awareness programmes and statistical checks on output quality, providing continual worker training and implementing vendor quality assurance programmes to ensure that the correct product is made to the appropriate quality level on the first pass through production l.b Set-up time reduction JIT systems have a number of financial benefits htt p:/ /fr e ea cc (ix) (x) ym (ii) (iii) (iv) (v) (vi) (vii) (viii) Increase in labour productivity due to labour being multiskilled and carrying out preventative maintenance Reduction of investment in plant space Reduction in costs of storing inventory Reduction in risk of inventory obsolescence Lower investment in inventory Reduction in costs of handling inventory Reduction in costs associated with scrap, defective units and reworking Higher revenue as a result of reduction in lost sales following failure to meet delivery dates (because of improved quality) Reduction in the costs of setting up production runs Higher revenues as a result of faster response to customer demands tud (i) as (b) ate ria If an organisation is able to reduce manufacturing lead time it is in a better position to respond quickly to changes in customer demand Reducing set-up time is one way in which this can be done Machinery set-ups are non-value-added activities which should be reduced or even eliminated Reducing set-up time (and hence set-up costs) also makes the manufacture of smaller batches more economical and worthwhile; managers not feel the need to spread the set-up costs over as many units as possible (which then leads to high levels of inventory) Set-up time can be reduced by the use of one product or one product family machine cells, by training workers or by the use of computer integrated manufacturing (CIM) 658 Practice answer bank http://freeaccastudymaterial.blogspot.com/ http://freeaccastudymaterial.blogspot.com/ (a) co m/ 20 Six Sigma and TQM In a nutshell, Total quality management (TQM) is a management philosophy, aimed at continuous improvement in all areas of operation A TQM initiative aims to achieve continuous improvement in quality, productivity and effectiveness It does this by establishing management responsibility for processes as well as output log sp o t Principles of TQM Prevention Organisations should take measures that prevent poor quality occurring (ii) Right first time A culture should be developed that encourages workers to get their work right first time This will save costly reworking (iii) Eliminate waste The organisation should seek the most efficient and effective use of all its resources (iv) Continuous improvement The Kaizen philosophy should be adopted Organisations should seek to improve their processes continually Everybody's concern Everyone in the organisation is responsible for improving processes and systems under their control Participation All workers should be encouraged to share their views and the organisation should value them Teamwork and empowerment Workers across departments should form team bonds so that eventually the organisation becomes one Quality circles are useful in this regard Workers should be empowered to make decisions as they are in the best position to decide how their work is done ym (vii) ria (vi) ate (v) l.b (i) Top tips This is a question that may appear daunting at first, but if you go through and deal with each element in turn it should not prove too difficult to earn a pass Six Sigma is a method for improving quality by removing defects and their causes in business processes Six Sigma is normally executed by people known as Green Belts (part time), Black Belts (full time) and Master Black Belts (full time trainers and coaches) as (b) tud Ensure you provide justification for the changes you recommend cc Six Sigma is all about reducing the variation of a process It requires an understanding of the relationship between input variables (Xs) and the dependent output variable (Y) Sigma equates in percentage terms to 99.9997% accuracy or to 3.4 defects per million ea Which Sigma Level to strive for is dependent upon market conditions, competitors’ performance and customer expectations A good example is the airline industry, where it would be inconceivable that only 99% of flights landed safely In contrast, most airline baggage handling processes are generally performing at Sigma (93% accuracy) htt p:/ /fr e Six Sigma has evolved into a powerful business philosophy and an instrument for driving cultural change As is the case with Lean, Six Sigma also relies on the application and deployment of best management practice in a structured manner Practice answer bank http://freeaccastudymaterial.blogspot.com/ 659 http://freeaccastudymaterial.blogspot.com/ co m/ A common tool used in Six Sigma is DMAIC (explained below) (i) Define the customer requirements that are Critical to Quality (CTQ) and map the process at a high level (ii) Establish a valid Measurement system, collect the data and describe the distribution of the process data (iii) Analyse Determine the process capability and identify and validate root causes of variation log sp o t using statistical tools (iv) Improve Develop and implement solutions (v) Control Establish ongoing process controls to avoid the problem recurring by htt p:/ /fr e ea cc as tud ym ate ria l.b implementing control charts, assigning clear process ownership and documenting the improved workflow 660 Practice answer bank http://freeaccastudymaterial.blogspot.com/ ym ate ria l.b log sp o t co m/ http://freeaccastudymaterial.blogspot.com/ htt p:/ /fr e ea cc as tud Index 661 http://freeaccastudymaterial.blogspot.com/ htt p:/ /fr e ea cc as tud ym ate ria l.b log sp o t co m/ http://freeaccastudymaterial.blogspot.com/ 662 http://freeaccastudymaterial.blogspot.com/ http://freeaccastudymaterial.blogspot.com/ Balanced scorecard, 368, 471 cc as tud ym BCG matrix, 518, 521 Behavioural control, 455 Benchmarking, 35, 95, 198, 349 and public sector league tables, 577 Benefits of lean production, 166 Brand awareness, 373 Brand loyalty, 374 Branding, 372, 373 Bribery, 110, 241 Budgeting, 21 Building blocks (Fitzgerald and Moon), 480 Burns and Scapens, 581 Business integration, 71 Business process re-engineering (BPR), 67, 68 Business strategy, 14 Calculative contract, 434 /fr e ea Capital markets and funding, 140 Capital structure, 288 Changes to management accounting systems due to empowering employees, 79 Changes to management accounting systems due to team working, 78 Characteristics of service businesses, 83 Codependency, 533 Codes of conduct, 113 Coercive contract, 434 Company profile, 375 htt p:/ log sp o t l.b ate Accountability, 453 Acid test ratio, 294 Activity analysis, 493 Activity based budgeting, 47 Activity based costing (ABC), 491 Activity based management (ABM) , 491, 492 Activity schedule, 234 Advanced manufacturing technology (AMT), 127 Agency theory, 453 Alliances, 159 Analytic/systematic processing, 177 and responsibility accounting, 179 Ansoff's growth vector matrix, 246, 523 Anthony, Robert, Appraisal costs, 402, 411, 415 Argenti's A score, 550 Arm's length transfer price, 329 Asset turnover, 274 Audits (VFM audits), 354 Comparisons of accounting figures, 301 Competitive performance, 481 Competitive strategy, 12, 75 Competitor benchmarking, 36 Computer Telephony Integration (CTI), 205 Connected stakeholders, 237 Consumer panels, 192 Consumer protection legislation, 113 Consumer safety, 112 Consumerism, 112, 113 Contingency approach to management accounting, 170 Contingent variables, 171 Continuous improvement, 126, 397, 497 Contribution tables, 136 Control, Controllability, 483 Controls over generating and distributing internal information, 208 Core activity, 495 Core business processes, 413 Corporate appraisal, 12 Corporate code(s), 242, 243 Corporate long-range planning, 11 Corporate objectives, 11, 231, 232 Corporate planning, 11 Corporate planning process, 231, 337 Corporate policy statement, 412 Corporate profit maximisation, 313, 316, 318, 319 Corporate social responsibility, 99 Corporate strategy, 14 Cost accounting methods, 128 Cost driver analysis, 495 Cost gap, 392 Cost leadership, 14 Cost of appraisal, 401 Cost of conformance, 402 Cost of external failure, 401 Cost of internal failure, 401 Cost of internally-sourced information, 195 Cost of non-conformance, 402 Cost of obtaining external data, 196 Cost of prevention, 401 Cost of quality, 383, 401, 411 Cost reduction, 493 Crisis stabilisation, 562 Critical success factors (CSFs), 19 Culture, 173, 176 Current ratio, 294 Customer satisfaction, 370 ria Absorption costing, 128 co m/ Note Key Terms and their page references are given in bold Index http://freeaccastudymaterial.blogspot.com/ 663 http://freeaccastudymaterial.blogspot.com/ co m/ log sp o t l.b F alse alarms, 18 Feedback, 252 Feedforward control, 252 Financial leverage/gearing, 288 Financial performance, 481 Financial performance indicators, 360 Financial risk, 288 Firewalls, 212 Five forces model, 511, 516 and business performance, 517 Fixed budget, 47 Flexibility, 200, 481, 482 Flexible budget, 47 Flexible firms, 158 Flow cost accounting, 574 Focus, 15 Formal goals, 231 Freewheeling opportunism, 30, 38 Fully diluted EPS, 273 Functional analysis, 394 Functional benchmarking, 36 Functional departmentation or organisation, 61 Functional strategies, 15 Funding, 139 Funding and achieving objectives, 51, 339 tud ym ate Data mart, 90 Data mining, 91 Data warehousing, 90 Database controls, 211 Database information, 193 Database management systems (DBMS), 90 Database packages, 204 Database providers, 193 Databases, 89, 158 Decision making, Decision support systems (DSS), 95 Declining companies, 545 Declining industries, 544 Dedicated cell layout, 127 Delayering, 79 Departmental plans and objectives, 234 Development potential of a system, 199 Differentiation, 14 Dimensions (in Building Block model), 481 Discretionary activities, 495 Disintegration, 545 Diversified form, 62 Diversionary activities, 495 Divestment, 524 Divisional (or diversified) form, 62 Divisional autonomy, 315, 318, 319 Divisional performance measurement, 316, 318, 319 DMAIC, 422 Double loop feedback, 252 Double taxation agreements, 329 Drill down reports, 216 Dual pricing, 320 Environmental performance, 577 Environmental taxes, 576 Ethical conduct, 241 Ethical organisations, 242 Ethical stance, 108 Ethics, 241 Evaluating output reports, 215 Exception reports, 216 Executive Information Systems (EIS), 96 Exogenous variables, 129 Expected values, 131 Experience curve and learning effect, 82 Expert systems, 96 External failure costs, 402, 411 External information and the management accounting system, 197 External sources of information, 190 External stakeholders, 237 Extranet, 89 ria Dashboards, 216 E htt p:/ /fr e ea cc as arnings per share (EPS), 272 EBITDA, 270 Economic capital, 239 Economic environment, 139 Economic profit, 502 Economic Value Added (EVA)®, 282 Economies of scale, 82 Economy, 343, 354 Effectiveness, 343, 354 Efficiency, 343, 354 Elkington – triple bottom line, 239 Empowerment, 79, 126, 422 Encryption, 212 Enterprise Resource Planning Systems (ERPS), 91, 163 Environment (contingent variables), 172 Environmental considerations, Environmental costs, 576 Environmental management accounting (EMA), 573 664 Gaming, 459 Gap analysis, 12, 245, 246 Gaps, 19 Gearing, 287 Gearing ratios, 288 Goal congruence, 8, 230 Goals, 12, 229 Government agencies, 191 Government regulation, 145 Index http://freeaccastudymaterial.blogspot.com/ Kaizen costing, 394 Groupware, 88 Growth vs survival, 263 Kanban, 386 H ard accountability, 453, 454, 455 Hard elements of business behaviour, 72 Heuristic/holistic processing, 177 Hierarchy of objectives, 235 Human behaviour, 175 L log sp o t l.b Machinery bureaucracy, 436 Management accounting, 30, 38, 160 Management accounting information, 160 objectives of, 160 within the management information system, 162 Management accounting system, 94, 96, 97 Management control, 6, 155 Management information system (MIS), 94, 162, 193 Management structure and information, 157 Management styles, 462 Managing the business, not just the numbers, 572 Market development, 523 Market penetration, 523 Mass service, 83 Maximax, 131, 134 Maximin, 131, 134 McKinsey 7S model, 71, 72 Measure fixation, 352, 459 Measurement, analysis and improvement, 413 Milestones of performance, 19 Minimax regret, 135 Misinterpretation, 459 Misrepresentation, 459 Mission, 12, 224, 225 Mission statements, 227, 412 Modified internal rate of return (MIRR), 279, 281 Motivation, 483 Multi skilled/multi-disciplinary teams, 78, 79 Multidimensional data analysis, 90 Multinational organisations, 22 Multinational transfer pricing, 328 Myopia, 459 /fr e ea cc as tud ym ate Ideological goals, 231 Impact of instant access to data on the business, 92 Implementing lean principles –the ‘S’s, 167 Importance of leadership, 557 Informal control, 20 Information for control purposes, 194 Information from customers, 192 Information from suppliers, 192 Information needs divisional structures, 64 functional structures, 62 manufacturing businesses, 80 Information requirements, 157 Innovation, 82, 126, 482, 483 Input/output analysis, 574 Inseparability, 83 Inspection costs, 411 Instant access to data, 87 Institutional strategies, 12 Intangibility, 83, 481 Integrated reporting, 586 Integration, 71 Interdependence of organisations, 158 Interest and pressure groups, 103 Intermediate product, 317 Internal audit, 414 Internal benchmarking, 35 Internal failure costs, 402, 411, 415 Internal rate of return, 279 Internal sources of management accounting information, 189 Internal stakeholders, 236 Internally sourced information for control purposes, 194 Internet businesses, 262 Internet companies, 299 Interoperability, 200 Intranet, 88 ISO 9000:2000 series, 409, 422 eague tables, 348, 351 Lean management information systems, 164 Lean production, 164, 165 Learning curve theory, 176 Learning curves, 175 Life cycle costing, 389, 574, 594 Limitations of external data, 196 Linkages, 74 Liquidity, 292 Liquidity ratios, 548 Logical access systems, 211 Long range planning, 11 Long run process drift, 421 Long-term objectives, 244 ria Icarus paradox, 547 co m/ http://freeaccastudymaterial.blogspot.com/ htt p:/ Just-in-time (JIT), 385 production, 385 purchasing, 385 Index http://freeaccastudymaterial.blogspot.com/ 665 http://freeaccastudymaterial.blogspot.com/ tud ym co m/ ate long-term and short-term, 244 Objectives, critical success factors and key performance indicators, 248 Online databases, 193 Operating gearing or leverage, 291 Operational control, 6, 155, 497 Operational goals, 229 Operational performance, 250 compared to strategic and tactical performance, 251 Operational planning, 6, 155 Operational strategies, 15 Operations planning, 14 Opportunity cost and transfer prices, 323 Organisation structure, 233 Organisational control mechanism (Ouchi), 457 Ossification, 459 Ownership, 483 log sp o t Objectives, 12, 229, 244 l.b Negative feedback, 252 Network organisations, 65, 157 Network technology, 207 Non-competitor benchmarking, 36 Non-financial information, 84 Non-financial performance indicators (NFPIs), 360 Non-financial performance measures, 365 Non-monetary information, 84 Non-operational goals, 229 Non-value-added activities, 494 Not-for-profit organisation, 51, 338 Politics in public sector organisations, 350 Positive feedback, 252 Potential conflict between survival and growth, 263, 264 Predicting business failure, 543 Prevention costs, 402, 411, 415 Price earnings (P/E) ratio, 298 Primary activity, 74, 495 Primary corporate objective, 232 Prior charge capital, 288 Process, 67 improvement, 418, 493 quality, 421 redesign, 419 reengineering, 418 Product development, 524 Product differentiation, 511 Product failures, 414 Product life cycle, 126, 559 Product-market mix, 246 Product-market strategies, 12 Profit before interest and tax (PBIT), 268 Profit margin, 274 Profitability, 268 Profits and share value, 298 Project management techniques, 422 Psychological contracts, 433, 434 Public sector organisations, 339 ria Natural capital, 239 Passwords, 211 htt p:/ /fr e ea cc as Penetration pricing policy, 521 Performance evaluation, 497 Performance measurement, 458 benefits of, 458 in not-for-profit organisations, 341 problems in complex business structures, 526 problems of, 458 Performance measures, 128 Performance pyramid, 478 Perishability of services, 83, 481 Personnel control, 456 PEST analysis, 138 Physical access controls, 211 Planning, 5, 328 Planning and control at different levels, 251 Planning gap, 245 Political factors (PEST), 138 666 Qualitative information, 84 recording and processing, 207 Qualitative issues, 372 Qualitative models, 554 Qualities of good information, 416 Quality, 346, 407 assurance, 408 certification, 409 control, 408 Quality management, 406 Quality management in information systems, 416 Quality management system, 407, 408, 410 Quality manager, 408 Quality manual, 408, 411 Quality objectives, 414 Quality of service, 370, 481 Quality policies, 412 Quality procedure, 412, 413 Quality process, 412 Quality-related costs, 401 Quantitative information, 84 Quantitative models of business failure, 548 Quick ratio, 294 Index http://freeaccastudymaterial.blogspot.com/ http://freeaccastudymaterial.blogspot.com/ S/L trade-off, 244, 245 /fr e ea cc as tud Sales growth, 274 Sales margin, 269 Secondary activity, 495 Secondary objectives, 232 Secondary ratios, 274 Security of information, 210 Services, 83 Shadow price, 326 Shamrock organisation, 159 Share options, 263 Share price, 299 Shared personal goals, 231 Shareholder (benefits), 259 Short-run financial performance, 296 Short-term objectives, 244 Simultaneity (service organisation), 83 Single loop feedback, 252 Six Sigma, 418 Social audit, 238 Social capital, 239 Social responsibility, 237 Soft elements of business behaviour, 72 Software packages, 204 Stakeholder analysis, 12, 563 htt p:/ log sp o t l.b ria ate ym Ranking objectives, 233 Rational model of strategic planning, 11 Recording and processing information, 201 developments in IT, 203 Regret, 135 Regulation of prices, 146 of quality, 146 of supply, 146 Remote input of data, 94 Residual income (RI), 276, 310 Resource utilisation, 482 Responsibility accounting, 179 Responsibility centre, 179 Responsibility charts, 234 Results control, 456 Return on capital employed (ROCE), 273 Return on investment (ROI), 274, 309 Reward, 440, 483 Reward schemes and performance measurement, 452 Reward structures, 483 Reward system, 440 Risk, 129 Risk averse, 132 Risk neutral, 132 Risk seeker, 132 Rolling budget, 47 Stakeholder approach, 236 Stakeholder groups, 563 Stakeholder mapping, 101 Stakeholders, 98, 99, 236, 563 Standard costing, 128 Standards (Building Block model), 483 Steering committee, 422 Strategic analysis, 12 Strategic business unit (SBU), 232 Strategic choice, 12 Strategic control, 18 Strategic control systems, 19 Strategic decisions, Strategic failure, 547 Strategic long-range planning, 11 Strategic management accounting, in a multinational context, 22 Strategic performance measures, 21 Strategic planning, 6, 155 Strategic planning model, 11 Strategic planning vs short-term localised decision-making, 29 Strategy implementation, 14 Strategy selection, 12 Subcultures, 141 Sub-optimisation, 458 Subsidiary objectives, 233 Supply chain, 114, 530 Supply chain management, 530, 533 Support activities, 74 Supporting processes, 413, 415 Survival, 263 Sustainability, 239 Switching costs, 512 SWOT analysis, 12, 31 System goals, 231 co m/ Radio frequency identification (RFID), 205 Tactical planning, 5, Target cost, 390 Target costing, 82, 533 Target market segments, 563 Target return, 275 Target selection, 438 Teams and teamwork, 77 Technology, 172 Three Es (value for money), 354 Time to market, 364 Total quality management (TQM), 384 Transfer pricing, 312, 314, 315 adjusted market price, 315 and opportunity cost, 323 at marginal cost, 319 based on full cost, 317 fixed costs and, 319 negotiated, 327 shadow price, 326 Index http://freeaccastudymaterial.blogspot.com/ 667 http://freeaccastudymaterial.blogspot.com/ standard cost versus actual cost, 320 when intermediate products are in short supply, 323 with a range of limiting factors, 325 Tunnel vision, 458 Turnaround, 562, 563 Turnover periods, 294 Uncertainty, 129 Undesirable service outcomes, 352, 353 Unified corporate databases, 203, 207 Unit objectives, 232 Use of targets in the public sector, 579 WiFi, 205 Value analysis, 393 Z log sp o t co m/ Value mindset, 500 Value stream management, 533 Value system, 74 Value-added activities, 494 Value-based management, 499 Value-chain analysis, 126 Variability (service organisation), 83 Vertical vector (balanced scorecard), 477 Virtual organisations, 158 Virtual teams, 157 Vision, 12, 224, 225 ero based budgeting, 45 ZETA model, 554 Z-scores, 549 htt p:/ /fr e ea cc as tud ym ate ria l.b Value chain, 73, 75 Value driver, 501 Value engineering, 392 Value for money, 343, 354 668 Index http://freeaccastudymaterial.blogspot.com/ ... This means we work closely with ACCA to ensure this Study Text contains the information you need to pass your exam In this, ACCA examination-team reviewed Study Text we: Highlight the most important... http://freeaccastudymaterial.blogspot.com/ Helping you to pass BPP Learning Media – Approved Learning Partner - content co m/ http://freeaccastudymaterial.blogspot.com/ log sp o t As ACCA s Approved... http://freeaccastudymaterial.blogspot.com/ Introduction http://freeaccastudymaterial.blogspot.com/ http://freeaccastudymaterial.blogspot.com/ co m/ Studying P5 As the name suggests, this paper examines advanced