Paper 2.4: June 2006 Exam Tips (FTC)

This post expands on the FTC's exam tips posted before:

ACCA
JUNE 2006 Exam Tips (FTC)
Paper 2.4

• Investment Appraisal; NPV to include tax and inflation, other methods of appraisal (possibly IRR) and possibly capital rationing

• Long term finance and gearing

• Working capital management, possibly to include debtors

• Budgeting

• Variance analysis – possibly to include mix and yield variances

Pre Examination

• Review lecture notes after the end of the course
• Rework all questions that were worked during your tuition or revision phase
• Read, re-read and understand the examiner’s articles, as these invariably form the basis for questions on the exam paper
• Make short notes on all the discursive material, to help revise and learn facts

Remember that you should practice questions on the examiners favourite topics, which are:

1. Activity Based Costing
2. Budgeting
3· Variance Analysis
4· Financial management objectives
5· Long-term sources of finance
6· Working capital management

In the exam

• Stay calm – if you have done the work suggested you are well prepared for the exam.
• Look at the marking guide to provide an indication as to the volume and time that should be devoted to each question.
• Watch your time management – don’t overrun your time allocation on each question, its easier to pass an exam attempting 100% of the exam than only doing 80%.
• Read the question carefully – highlight the key words.
• Read the question requirements at least twice before you start writing, and again when you have finished answering it – this will keep you focussed on answering the question set and not the question you thought had been set!
• Spend a few minutes planning your answer – this will help you to build a structure to your answer.

Author's Note: The tips are taken directly from ftc4success.