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100+ Free ACCA PM Practice Questions

Prepare for the ACCA Applied Skills — Performance Management (PM) exam with instant access — no signup required.

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Around 40% globally in recent sittings Pass Rate
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2026 Statistics

Key Facts: ACCA PM Exam

3 hours

Session CBE Duration

ACCA PM Essentials

100

Total Marks

ACCA PM Syllabus

50%

Pass Mark

ACCA Exam Regulations

5 areas

Syllabus Areas A-E

ACCA PM Syllabus 2025-26

~40%

Recent Pass Rate

ACCA Pass Rates

15 OTs

Section A Questions

ACCA PM Essentials

ACCA PM is a 3-hour session computer-based exam worth 100 marks with a 50% pass mark. Section A has 15 two-mark objective-test questions; Section B has 3 case questions each containing five two-mark OT items; Section C has 2 twenty-mark constructed-response questions. The 2025-26 syllabus spans five areas: A management information systems and data analytics, B specialist cost and management accounting techniques, C decision-making techniques, D budgeting and control, and E performance measurement and control. Global pass rates have been around 40%. This free bank builds 100 objective-test-style MCQs across all five areas.

Sample ACCA PM Practice Questions

Try these sample questions to test your ACCA PM exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under activity-based costing (ABC), what is the role of a cost driver?
A.It is the total overhead absorbed by a product
B.It is the factor that causes the cost of an activity to change
C.It is the rate used to apply direct labour to output
D.It is the budgeted profit margin per unit
Explanation: A cost driver is the factor that causes the cost of an activity to be incurred (for example, number of set-ups or purchase orders). ABC pools costs by activity and then assigns them using the relevant driver, giving more accurate product costs than a single volume-based overhead rate.
2A company uses target costing. Selling price is set at $50 and the required profit margin is 20% of selling price. What is the target cost per unit?
A.$30
B.$42
C.$60
D.$40
Explanation: Target cost = target selling price minus required profit. Required profit = 20% x $50 = $10, so target cost = $50 - $10 = $40. Target costing works backwards from a market-driven price and a desired margin to the maximum allowable cost.
3In throughput accounting, the throughput accounting ratio (TPAR) is calculated as:
A.Return per factory hour divided by cost per factory hour
B.Sales revenue divided by total costs
C.Contribution per unit divided by sales price
D.Throughput per unit divided by material cost per unit
Explanation: The TPAR equals return per factory hour (throughput per hour on the bottleneck) divided by the cost per factory hour (total factory cost per bottleneck hour). A TPAR above 1 means the product earns more than it costs to run the bottleneck and is worth producing.
4Life-cycle costing is most useful because it:
A.Ignores costs incurred before production starts
B.Accumulates all costs over a product's entire life, including design and decommissioning
C.Only measures costs during the maturity phase
D.Replaces the need for budgeting
Explanation: Life-cycle costing tracks all costs from research and design through to decommissioning, recognising that a large proportion of total costs is committed at the design stage. This gives a fuller view of profitability than period-based costing, which often ignores pre-production and end-of-life costs.
5A product has activity costs: machine set-ups $40,000 for 200 set-ups, and the product requires 25 set-ups. What set-up cost is assigned to this product under ABC?
A.$5,000
B.$4,000
C.$8,000
D.$10,000
Explanation: The cost-driver rate is $40,000 / 200 set-ups = $200 per set-up. The product uses 25 set-ups, so assigned cost = 25 x $200 = $5,000. ABC charges overheads in proportion to actual driver consumption rather than volume.
6Which statement best describes 'environmental management accounting' (EMA) as covered in the PM syllabus?
A.It is only concerned with legal compliance fines
B.It identifies, collects and analyses environment-related costs to support decisions
C.It excludes any non-financial information
D.It is identical to traditional absorption costing
Explanation: EMA identifies, collects, analyses and uses environment-related cost and physical (e.g. energy, water, waste) information to support management decisions. It often reveals hidden costs buried in general overheads and supports sustainability-driven decision-making.
7A bottleneck resource provides 1,000 hours. Product X earns throughput of $30 per unit and uses 0.5 hours; Product Y earns $20 and uses 0.2 hours. Which product should be prioritised under throughput accounting?
A.Product X, because its throughput per unit is higher
B.Both equally
C.Neither; prioritise by sales price
D.Product Y, because its throughput per bottleneck hour is higher
Explanation: Throughput accounting ranks by throughput per bottleneck hour. X = $30 / 0.5 = $60/hour; Y = $20 / 0.2 = $100/hour. Y earns more per scarce hour, so it should be prioritised, mirroring the limiting-factor logic applied to the constraint.
8Compared with traditional absorption costing, ABC tends to assign HIGHER unit costs to products that are:
A.Low-volume and complex
B.High-volume and simple
C.Sold at the highest price
D.Made from the cheapest materials
Explanation: ABC traces overheads via activity drivers, so low-volume, complex products that consume many set-ups, inspections or special handling absorb more overhead than under a volume-based rate. Traditional absorption costing tends to under-cost these and over-cost high-volume simple lines.
9In target costing, if the estimated cost exceeds the target cost, the difference is known as the:
A.Contribution margin
B.Margin of safety
C.Cost gap
D.Variance ratio
Explanation: The cost gap is the amount by which the estimated cost exceeds the target cost. Management must close it through value engineering, redesign, supplier negotiation or process improvement so the product can be sold profitably at the market price.
10Total factory costs are $200,000 and the bottleneck provides 5,000 hours. A product earns throughput of $80 per unit and uses 1 hour of bottleneck time. What is its throughput accounting ratio (TPAR)?
A.1.0
B.2.0
C.1.6
D.0.625
Explanation: Cost per factory hour = $200,000 / 5,000 = $40. Return per factory hour = $80 / 1 hour = $80. TPAR = $80 / $40 = 2.0, meaning the product generates twice the factory cost per bottleneck hour and is clearly worth producing.

About the ACCA PM Exam

ACCA Performance Management (PM) is an Applied Skills exam that develops the ability to apply management-accounting techniques to planning, decision-making, performance evaluation and control. It is a 3-hour session CBE with objective-test sections A and B and constructed-response Section C, all questions compulsory.

Assessment

Question count not published by the exam provider

Time Limit

3 hours (session CBE)

Passing Score

50% (standard ACCA pass mark)

Exam Fee

Exam entry fee set by ACCA and varying by sitting and registration window; see the ACCA exam fees page (Association of Chartered Certified Accountants (ACCA))

ACCA PM Exam Content Outline

~10%

A: Management information systems and data analytics

Sources and uses of management information, information systems and controls, and the role of big data and data analytics in supporting organisational performance.

~25%

B: Specialist cost and management accounting techniques

Activity-based costing, target costing, life-cycle costing, throughput accounting and the throughput accounting ratio, and environmental and sustainability accounting.

~25%

C: Decision-making techniques

Relevant costing, cost-volume-profit analysis, limiting factors and linear programming, pricing, make-or-buy and short-term decisions, and risk and uncertainty.

~20%

D: Budgeting and control

Budgetary systems and types, the learning curve, standard costing, and the calculation and interpretation of variances including mix, yield, planning and operational.

~20%

E: Performance measurement and control

Performance management information systems, financial and non-financial measures, divisional performance and transfer pricing, and not-for-profit performance measurement.

How to Pass the ACCA PM Exam

What You Need to Know

  • Passing score: 50% (standard ACCA pass mark)
  • Assessment: Question count not published by the exam provider
  • Time limit: 3 hours (session CBE)
  • Exam fee: Exam entry fee set by ACCA and varying by sitting and registration window; see the ACCA exam fees page

Keys to Passing

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

ACCA PM Study Tips from Top Performers

1Practise objective-test questions under timed conditions, allowing about 1.8 minutes per two-mark item to match Section A and B pacing.
2Learn the throughput accounting ratio, limiting-factor ranking and relevant-costing rules thoroughly because they recur across the exam.
3Memorise the standard variance formulae, including mix, yield, and planning and operational variances, then practise interpreting them in words.
4Build a clear method for divisional performance, calculating ROI and residual income and explaining the goal-congruence differences between them.
5Do not neglect the written Section C: practise explaining results and recommending action, not just calculating numbers.
6Use the official ACCA practice platform so you are comfortable with the CBE spreadsheet and constructed-response response areas.

Frequently Asked Questions

How is the ACCA PM exam structured?

PM is a 3-hour session CBE worth 100 marks. Section A has 15 two-mark objective-test questions, Section B has 3 case questions of five two-mark OT items each, and Section C has 2 twenty-mark constructed-response questions. All questions are compulsory.

What is the ACCA PM pass mark?

The pass mark for ACCA PM, like all ACCA Qualification exams, is 50%. ACCA does not impose a quota; any candidate scoring 50 or more of the 100 marks passes.

What is the ACCA PM pass rate?

ACCA reports PM (formerly F5) pass rates each session, and they have generally been around 40% in recent sittings. Pass rates vary slightly by exam window.

What topics are in the ACCA PM syllabus?

The 2025-26 PM syllabus has five areas: A management information systems and data analytics, B specialist cost and management accounting techniques, C decision-making techniques, D budgeting and control, and E performance measurement and control.

How long should I study for ACCA PM?

Most candidates study around 130-150 hours over roughly 8-12 weeks, combining the official syllabus, the ACCA practice platform, and timed mock exams across Sections A, B and C.

How much does the ACCA PM exam cost?

ACCA sets the PM exam entry fee, which varies by sitting and registration window, plus an annual student subscription. Check the current ACCA exam fees page for the exact amounts before booking.

Is ACCA PM the same as F5?

Yes. Performance Management (PM) is the current name for the exam previously coded F5. It sits at the Applied Skills level of the ACCA Qualification.

Can these MCQs fully prepare me for ACCA PM?

These objective-test-style MCQs strongly support Sections A and B (60 marks) and reinforce the techniques used in Section C. You should still practise full Section C constructed-response questions on the official ACCA platform.