ACCA Advanced Performance Management
(APM) Exam 2025 – Study Guide, Mock Exams
& Expert Insights
Prepare for ACCA Advanced Performance Management (APM) Exam 2025 with
our complete study resources. Access detailed notes, strategic case studies, mock
exams, and examiner-style questions designed to help you master performance
measurement, strategy, and business analysis for exam success.
Traditional absorption costing
Uses a single basis for absorbing all overheads into cost units for a particular production
department cost centre.
Activity based costing (ABC)
A method of costing that will involve identifying the costs of the main support activities and
the factors that will essentially 'drive' the costs of each activity.
Support overheads are charged to products by absorbing cost on the basis of the product's
usage of the factor driving the overhead.
Cost Driver
Is a factor that has the most influence on the cost of the activity.
Environmental management accounting (EMA)
The generation and analysis of both financial and non-financial information to support internal
environmental management process.
Environmental prevention costs
Cost of activities undertaken to prevent the environmental impacts before they occur.
,Environmental detection costs
Costs with establishing whether activities comply with environmental standards and policies.
Environmental internal failure costs
Costs of activities that must be undertaken when contaminants and waste have been created
by a business but have not been released into the environment.
Environmental external failure costs
Costs that arise when a business releases harmful waste into the environment.
Conventional costs
Ordinary use of equipment, material and overhead costs where the environment would
benefit from decreased use.
Potentially hidden costs
Costs which are hidden in overheads.
Contingent costs
Costs which maybe incurred at a later date.
Image and relationship costs
Costs which have been incurred to manage either perception or image.
Environmental related costs
,Costs which can be attributed to a cost centre.
Environmental driven costs
Costs which can be driven by events in the environment bust usually hidden in general
overheads.
Return on investment (ROI)
Shows how much profit has been made in relation to the amount of capital invested.
Residual Income
Is a measure of the centre's profits after deducting a notional or imputed interest cost.
Transfer price
Is the price which goods or services are transferred from one department to another, or from
one member of a group to another.
Intermediate product
Is one used to component in another product.
Strategic planning
Will be the process of deciding on objectives for the organisation, the changes or any changes
to these objectives, on the resources which have been used to attain these objectives, and on
the strategies that are then to govern the acquisition, use ad disposition of those resources.
Management (or tactical) control
Where managers will ensure that resources are obtained and used effectively and efficiently in
the process of achieving an organisations objectives.
, Operational control
The process where specific tasks are carried out effectively and efficiently.
Performance management systems
The systems that will be within an organisation by which the performance of that organisation
will be measured, controlled and improved.
Strategic management accounting (SMA)
Is a form of management accounting in which there will be an emphasis on information about
factors which maybe external to the organisation as well as on non-financial and internally
generated information.
Benchmarking
The establishment, through data collection, of targets and comparators, which will allow
relative levels of performance and particularly underperformance to be identified in relation to
best practice. The aim is that adopting identified best practices will lead to an improvement in
performance levels.
SWOT analysis
Helpful when assisting with setting CSFs.
A critical assessment of the strengths and weaknesses, opportunities and threats affecting an
entity, in order to establish its strategic position prior to developing a strategic plan.
Cost leadership strategy
A strategy in which a firm seeks to be the lowest cost producer in the industry as a whole.
Differentiation strategy
A strategy in which a firm seeks to gain a competitive advantage through the particular
characteristics of its products or processes.
(APM) Exam 2025 – Study Guide, Mock Exams
& Expert Insights
Prepare for ACCA Advanced Performance Management (APM) Exam 2025 with
our complete study resources. Access detailed notes, strategic case studies, mock
exams, and examiner-style questions designed to help you master performance
measurement, strategy, and business analysis for exam success.
Traditional absorption costing
Uses a single basis for absorbing all overheads into cost units for a particular production
department cost centre.
Activity based costing (ABC)
A method of costing that will involve identifying the costs of the main support activities and
the factors that will essentially 'drive' the costs of each activity.
Support overheads are charged to products by absorbing cost on the basis of the product's
usage of the factor driving the overhead.
Cost Driver
Is a factor that has the most influence on the cost of the activity.
Environmental management accounting (EMA)
The generation and analysis of both financial and non-financial information to support internal
environmental management process.
Environmental prevention costs
Cost of activities undertaken to prevent the environmental impacts before they occur.
,Environmental detection costs
Costs with establishing whether activities comply with environmental standards and policies.
Environmental internal failure costs
Costs of activities that must be undertaken when contaminants and waste have been created
by a business but have not been released into the environment.
Environmental external failure costs
Costs that arise when a business releases harmful waste into the environment.
Conventional costs
Ordinary use of equipment, material and overhead costs where the environment would
benefit from decreased use.
Potentially hidden costs
Costs which are hidden in overheads.
Contingent costs
Costs which maybe incurred at a later date.
Image and relationship costs
Costs which have been incurred to manage either perception or image.
Environmental related costs
,Costs which can be attributed to a cost centre.
Environmental driven costs
Costs which can be driven by events in the environment bust usually hidden in general
overheads.
Return on investment (ROI)
Shows how much profit has been made in relation to the amount of capital invested.
Residual Income
Is a measure of the centre's profits after deducting a notional or imputed interest cost.
Transfer price
Is the price which goods or services are transferred from one department to another, or from
one member of a group to another.
Intermediate product
Is one used to component in another product.
Strategic planning
Will be the process of deciding on objectives for the organisation, the changes or any changes
to these objectives, on the resources which have been used to attain these objectives, and on
the strategies that are then to govern the acquisition, use ad disposition of those resources.
Management (or tactical) control
Where managers will ensure that resources are obtained and used effectively and efficiently in
the process of achieving an organisations objectives.
, Operational control
The process where specific tasks are carried out effectively and efficiently.
Performance management systems
The systems that will be within an organisation by which the performance of that organisation
will be measured, controlled and improved.
Strategic management accounting (SMA)
Is a form of management accounting in which there will be an emphasis on information about
factors which maybe external to the organisation as well as on non-financial and internally
generated information.
Benchmarking
The establishment, through data collection, of targets and comparators, which will allow
relative levels of performance and particularly underperformance to be identified in relation to
best practice. The aim is that adopting identified best practices will lead to an improvement in
performance levels.
SWOT analysis
Helpful when assisting with setting CSFs.
A critical assessment of the strengths and weaknesses, opportunities and threats affecting an
entity, in order to establish its strategic position prior to developing a strategic plan.
Cost leadership strategy
A strategy in which a firm seeks to be the lowest cost producer in the industry as a whole.
Differentiation strategy
A strategy in which a firm seeks to gain a competitive advantage through the particular
characteristics of its products or processes.
