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ACCA Performance Management (PM) Exam Syllabus: What You Need to Know

Justyna Wachulka-Chan

  • November 12, 2025
  • 4 minutes read
acca pm syllabus

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The ACCA Performance Management (PM) exam is one of the most challenging at the Applied Skills level. The new syllabus covers management information systems, costing techniques, decision-making tools, budgeting, variances, divisional performance, and employability skills. While the content looks manageable at first glance, the exam is tough because of its variety and the heavy reliance on memory. Success requires strong conceptual understanding and plenty of practice with past questions.

What is covered in the ACCA Performance Management exam?

The ACCA PM exam tests your ability to apply management accounting techniques in real-world scenarios. It covers:

  • Management Information Systems and Big Data
  • Costing Methods(Activity-based, Target, Life Cycle, Throughput, Absorption, Marginal)
  • Decision-making Techniques(Relevant costing, CVP, pricing, limiting factors, risk and uncertainty)
  • Budgeting and Variance Analysis
  • Performance Measurement(Ratios, divisional performance, not-for-profit organizations)
  • Employability and Technology Skills

Each area requires both theoretical knowledge and the ability to apply it in practice questions.

Why do you need to understand management information systems?

You need to understand how management information systems (MIS) work because many organizations still use legacy systems. These were purchased years ago and have not kept up with increasing business complexity. As a future finance professional, you must be able to:

  • Explain the limitations of outdated systems.
  • Justify investment in new systems to decision-makers.
  • Use Big Dataeffectively for decision-making in areas such as retail, customer behavior, and marketing opportunities.

👉 Expect most questions on this topic to appear as multiple-choice or multiple-select questions.

Which costing methods do you need to master?

Costing is a core part of the PM syllabus. You will need to understand and apply several approaches:

  • Activity-Based Costing (ABC):Assigning costs based on activities.
  • Target Costing:Setting costs based on competitive pricing.
  • Life Cycle Costing:Analyzing costs across the product’s life span.
  • Throughput Accounting:Focusing on maximizing contribution per limiting factor.
  • Absorption and Marginal Costing:Traditional costing methods.
  • Environmental and Sustainability Accounting:Recording environmental impact such as CO2 emissions.

👉 These questions are often tricky because they mix technical calculations with judgment.

How important are budgeting and variance analysis?

Budgeting and variances are core components of the PM exam. You may need to:

  • Recreate a budget in a scenario-based question.
  • Discuss which budgeting approach (fixed, flexible, rolling, zero-based) is best.
  • Calculate and interpret a wide range of variances(e.g. material, labor, overhead, sales).

⚠️ Variances are one of the most tested areas, requiring both practice and revision. Many students fail this exam because variance knowledge fades quickly without regular study.

How is performance measurement examined?

The syllabus tests your ability to evaluate performance using:

  • Financial Ratios:Profitability, liquidity, efficiency.
  • Not-for-Profit Performance:The 3Es framework (Economy, Efficiency, Effectiveness).
  • Divisional Performance and Transfer Pricing:A frequent feature of Section C questions.

This area demands fluency, since questions often mix ratio analysis with interpretation.

What are employability and technology skills in the ACCA PM exam?

Finally, ACCA includes Employability and Technology Skills (ETS) in the PM exam. These ensure that students can:

  • Work effectively in a computer-based exam platform.
  • Apply skills that reflect real workplace demands.
  • Demonstrate professional use of digital tools.

Why is the PM exam considered difficult?

Although the syllabus looks manageable, the PM exam is statistically one of the most failed ACCA exams. Reasons include:

  • The syllabus is very broadand requires memorization.
  • Knowledge from one topic (e.g. CVP) will not necessarily help in another (e.g. transfer pricing).
  • Students often underestimate the need for consistent practice.

👉 Success comes from structured study, revisiting tricky areas like variances, and practicing plenty of past exam questions.

Final takeaway

The ACCA Performance Management exam is not just about calculations. It is about applying management accounting skills to real business challenges. To succeed, you must:

  • Learn the theory behind each technique.
  • Practice applying it in different contexts.
  • Revise regularly, especially for variances and decision-making.

If you prepare systematically, the PM exam will give you strong skills that are directly useful in professional practice.

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About the Author

Justyna Wachulka-Chan

Justyna is a seasoned professional with 8 years of dedicated experience in the computer-based accounting and finance certification coaching industry. She is committed to providing students with the knowledge and tools necessary to succeed on their exams.

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