Book Description

CIMA offers a business qualification with a finance focus, aiming to produce members with accounting prowess who are skilled in strategic decision-making. 98% of its members work in business, the highest proportion of any worldwide accountancy body. Paper P2 - Performance Management is the second paper in the Performance pillar. It builds on Paper P1 knowledge as well as introducing such new topics as transfer pricing. The paper focuses on the ability to discuss and evaluate results as well as use techniques to calculate the numbers.The syllabus is concerned with * Analysis and discussion of pricing and product decisions * Evaluation of techniques used to in cost planning and analysis for competitive advantage * Evaluation of performance using budgets and discussion of issues in using budgets for this purpose * Discussion of how to measure performance of responsibility centres and evaluation of the usefulness of these techniquesP1 requires a good understanding of the underlying concepts and techniques in all five areas.P1 also needs you to be able to apply these concepts to practical situations, evaluate them critically and interpret the results. The P2 study text provides comprehensive coverage of the complete P2 syllabus. It features step-by-step guides to such topics as limiting factor analysis, multi-product breakeven analysis and budgeting. Each chapter includes numerous simple and comprehensive examples of how to apply various techniques. Areas that students traditionally find difficult - such as linear programming and transfer pricing - are dealt with in dedicated chapters that break these topics down into manageable sections and give students plenty of opportunities to practise techniques.