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Final AssessmentKAPLAN PUBLISHING Page 1 of 9

ACCA FINAL ASSESSMENT

AdvancedPerformanceManagement

QUESTION PAPER

Time allowed Reading time:

15 minutes

Writing time:

3 hours

This paper is divided into two sectionsSection A

BOTH questions are compulsory and MUST beanswered

Section B

TWO questions ONLY to be answered

Do not open this paper until instructed by the supervisor This question paper must not be removed from the examinationhallJUNE 2009

Kaplan Publishing/Kaplan Financial

ACCA P5 Advanced Performance Management© Kaplan Financial Limited, 2008All rights reserved. No part of this examination may be reproduced or transmitted in any formor by any means, electronic or mechanical, including photocopying, recording, or by anyinformation storage and retrieval system, without prior permission from Kaplan Publishing.Page 2 of 9 KAPLAN PUBLISHING

Final Assessment

SECTION A

BOTH questions are compulsory and MUST be answered

QUESTION 1

John Wizard has recently won a contract to act as a financial consultant to Sportstown, apublicly owned organisation that provides a range of community services to its inhabitants.Wizard’s first brief is to prepare a report on the ‘Operating Efficiency and FinancialPerformance’ of the leisure centre that is owned and managed by the public body. Thegoverning body of Sportstown has become increasingly concerned by the growing financialsubsidy that it has to provide to its leisure centre. Sportstown originally owned and operatedtwo identical leisure centres, but sold one of them in 20X0 to a private leisure company,Totaleisure, who continue to manage a successful leisure business. Totaleisure have kindlyprovided Wizard with recent operating and financial data to permit a comparative study to beundertaken. The two leisure centres both offer the same four activities: Squash, Swimming,Gym and Badminton. The following data and information is available for the Sportstown leisurecentre and for Totaleisure:

Data categorised by leisure activity for 20X6

Squash Swimming Gym Badminton

*S *T *S *T *S *T *S *TNumber of hours per day thatthe facility is open12 13 10 15 12 15 6 8% utilisation of facility +

−

daytime 50 20 70 40 15 25 50 40

−

evening 80 85 70 80 50 85 50 60The average number of people attending per hour who pay6 n/a 29 n/a 20 n/a 6 n/aPrice per person per hour $4 n/a $2 n/a $3 n/a $4 n/aAnnual cost savings if activityis discontinued ($000)21 25 120 105 51 60 60 52*S = Sportstown*T = Totaleisure+ = Includes free access customers

Cost data ($000)Actual Budget 20X5 20X6 20X6

*S *T *S *T *S *TSalaries 450 350 500 400 550 350Maintenance contract 150 75 200 100 200 90Depreciation 25 50 25 50 25 50Other costs 125 100 75 25 125 150Loan interest None 200 None 125 None 200*S = Sportstown*T = TotaleisureKAPLAN PUBLISHING Page 3 of 9

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