ACCA PM Formula Sheet
The key formulas for ACCA PM (Performance Management) on a single A4 page, free to download and print. Built to the paper's current examinable scope.
PM Formula Sheet · PDF · 1 page · A4 · print-ready
Download the PM formula sheetThe formulas on the PM sheet
The full sheet, reproduced as text so you can revise on screen. Last checked September 2026. Spotted an error? Report it and it will be corrected.
Throughput Accounting
- Throughput = Sales revenue − Direct material costs
- TPAR = Throughput per bottleneck hour ÷ Operating cost per bottleneck hour
- TPAR > 1: profitable · TPAR < 1: loss-making
Activity-Based Costing
- Cost driver rate = Total cost pool ÷ Total cost driver units
- Product cost = Σ(Cost driver rate × Drivers used by product)
Target Costing
- Target cost = Market price − Required profit margin
- Cost gap = Current cost − Target cost
Pricing — Demand & Marginal Revenue
- P = a − bQ
- b = ΔP ÷ ΔQ
- MR = a − 2bQ
- P = price · Q = quantity · a = price when Q = 0
- Profit maximised where MR = MC
Relevant Costing
- Relevant cost = Future incremental cash flow from the decision
- Opportunity cost = Benefit foregone from next best alternative
Limiting Factors
- Rank by contribution per unit of scarce resource (highest = best)
- Shadow price = Extra contribution from one additional unit of resource
Risk & Uncertainty
- EV = Σ (Probability × Outcome)
- Value of perfect information = EV with PI − EV without PI
Learning Curve
- Y = axb
- b = log(LR) ÷ log 2
- Y = cumulative avg time/unit · a = time for first unit · LR = learning rate
Planning & Operational Variances
- Planning = (Original std − Revised std) × Actual output
- Operational = (Revised std − Actual) × Actual output
- Planning = uncontrollable · Operational = management performance
Mix & Yield Variances
- Mix = (Actual in std mix − Actual qty used) × Std cost
- Yield = (Actual yield − Expected yield from actual input) × Std cost/unit
- Calculate mix on ACTUAL total input in standard mix proportions
Sales Mix & Quantity Variances
- Sales mix = (Actual in actual mix − Actual in std mix) × Std contribution/unit
- Sales qty = (Actual in std mix − Budgeted) × Std contribution/unit
- Both use standard contribution per unit, not standard cost
Transfer Pricing
- Minimum TP (seller) = Marginal cost + Opportunity cost
- Maximum TP (buyer) = External market price (or net marginal revenue)
- Always state both minimum and maximum in exam answers
Divisional Performance
- ROI = Divisional profit ÷ Divisional net assets × 100
- Residual income = Divisional profit − (Net assets × Cost of capital)
- ROI may reject positive NPV projects · RI aligns with NPV
Financial Performance Indicators
- ROCE = PBIT ÷ Capital employed × 100
- ROCE = Profit margin × Asset turnover
- Gearing = Debt ÷ (Debt + Equity) × 100
- Interest cover = PBIT ÷ Interest payable
- Current ratio = Current assets ÷ Current liabilities
- Receivable days = Receivables ÷ Revenue × 365
- Payable days = Payables ÷ Cost of sales × 365
- Inventory days = Inventory ÷ Cost of sales × 365
How to use it
A formula sheet is a revision aid, not a substitute for practice. Reading formulas builds recognition; applying them under time pressure builds recall, and it's recall the exam tests. The most effective way to use this sheet is alongside questions: attempt a question first, then check the sheet only when you're stuck, rather than working with it open in front of you.
Print it and keep it beside you while you work through PM questions. Once you stop reaching for it, you know the formulas are in place.
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This sheet is an original compilation of standard formulas mapped to ACCA PM's current examinable scope. It is a revision aid only and is not a substitute for the official formulae and rates provided in your exam. Looking for another paper? See all ACCA formula sheets. GoQualified is not affiliated with ACCA.