Performance Pillar
Wednesday 31 August 2011 Instructions to candidates You are allowed three hours to answer this question paper. You are allowed 20 minutes reading time before the examination begins during which you should read the question paper and, if you wish, highlight and/or make notes on the question paper. However, you will not be allowed, under any circumstances, to open the answer book and start writing or use your calculator during this reading time. You are strongly advised to carefully read ALL the question requirements before attempting the question concerned (that is all parts and/or subquestions). ALL answers must be written in the answer book. Answers written on the question paper will not be submitted for marking. You should show all workings as marks are available for the method you use. ALL QUESTIONS ARE COMPULSORY. Section A comprises 8 sub-questions and is on pages 2 to 5. Section B comprises 6 sub-questions and is on pages 6 to 8. Section C comprises 2 questions and is on pages 10 to 13. Maths tables and formulae are provided on pages 15 to 18. The list of verbs as published in the syllabus is given for reference on page 19. Write your candidate number, the paper number and examination subject title in the spaces provided on the front of the answer book. Also write your contact ID and name in the space provided in the right hand margin and seal to close. Tick the appropriate boxes on the front of the answer book to indicate which questions you have answered.
P1 – Performance Operations
P1 – Performance Operations
TURN OVER
The Chartered Institute of Management Accountants 2011
SECTION A – 20 MARKS [You are advised to spend no longer than 36 minutes on this question.]
ANSWER ALL EIGHT SUB-QUESTIONS IN THIS SECTION
Instructions for answering Section A: The answers to the eight sub-questions in Section A should ALL be written in your answer book. Your answers should be clearly numbered with the sub-question number then ruled off, so that the markers know which sub-question you are answering. For multiple choice questions, you need only write the sub-question number and the letter of the answer option you have chosen. You do not need to start a new page for each sub-question. For sub-questions 1.6 to 1.8 you should show your workings as marks are available for the method you use to answer these sub-questions.
Question One 1.1
Which of the following would never be considered a feature of factoring?
A
The factoring company charges a fee for its services.
B
Interest is charged on the amount advanced to the client from the date of the advance until the debt is settled by the client’s customer.
C
The factoring company advances a percentage of the invoice value immediately, with the remainder being paid when the client’s customer settles the debt.
D
The borrowing is repayable over a number of years. (2 marks)
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1.2
A marketing manager is trying to decide which of four potential selling prices to charge for a new product. The state of the economy is uncertain and may show signs of recession, growth or boom. The manager has prepared a regret matrix showing the regret for each of the possible outcomes depending on the decision made. Regret Matrix State of the economy
Selling price $40
$45
$50
$55
Boom
$10,000
$0
$20,000
$30,000
Growth
$20,000
$10,000
$0
$20,000
Recession
$0
$10,000
$20,000
$30,000
If the manager applies the minimax regret criterion to make decisions, which selling price would be chosen?
A
$40
B
$45
C
$50
D
$55 (2 marks)
1.3
A decision maker that makes decisions using the minimax regret criterion would be classified as:
A
Risk averse
B
Risk seeking
C
Risk neutral
D
Risk spreading (2 marks)
Section A continues on the next page
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Performance Operations
1.4
A company is offering its customers the choice of a cash discount of 3% for payment within 15 days of the invoice date or paying in full within 45 days. The effective annual interest rate of the cash discount is:
A
43.3%
B
12.5%
C
44.9%
D
24.7% (2 marks)
1.5
AB’s estimated trade receivables outstanding at the end of this year are the equivalent of 60 days’ credit sales. Credit sales for this year are projected to be $682,000. AB is preparing the budget for next year and estimates that credit sales will increase by 15%. The trade receivables amount, in $, outstanding at the end of next year is anticipated to be the same as at the end of this year. The budgeted trade receivable days at the end of next year, to the nearest day, will be:
A
52 days
B
69 days
C
51 days
D
60 days (2 marks)
1.6
PJ has budgeted sales for the next two years of 144,000 units per annum spread evenly throughout each year. The estimated closing inventory at the end of this year is 6,500 units. PJ wants to change its inventory policy so that it holds inventory equivalent to one month’s sales. The change in inventory policy will take place at the beginning of next year and will apply for the next two years. Each unit produced requires 2 hours of direct labour. The budgeted direct labour rate per hour is $15. It is anticipated that 80% of production will be paid at the budgeted rate and the remainder will be paid at the overtime rate of time and a half. PJ treats overtime costs as part of direct labour costs.
Required: Calculate the direct labour cost budget for the next year. (3 marks)
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1.7
An investor is considering purchasing a bond with a par value of $100 and a coupon rate of 8% payable annually. The bond is redeemable at par in 6 years’ time. Bonds with the same level of risk have a yield to maturity of 7%.
Required: Calculate the price the investor should pay for the bond if the first interest payment will be paid one year after the date of purchase. (3 marks)
1.8
FP can choose from three mutually exclusive projects. The net cash flows from the projects will depend on market demand. All of the projects will last for only one year. The forecast net cash flows and their associated probabilities are given below: Market demand Probability
Weak 0.30
Average 0.50
Good 0.20
Project A Project B Project C
$000 400 300 500
$000 500 350 450
$000 600 400 650
Required: (i)
Calculate the expected value of the net cash flows from each of the THREE projects.
(ii)
Calculate the value of perfect information regarding market demand. (4 marks)
(Total for Section A = 20 marks)
Reminder
All answers to Section A must be written in your answer book. Answers to Section A written on the question paper will not be submitted for marking.
End of Section A. Section B begins on page 6
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Performance Operations
SECTION B – 30 MARKS [You are advised to spend no longer than 9 minutes on each sub-question in this section.] ANSWER ALL SIX SUB-QUESTIONS. YOU SHOULD SHOW YOUR WORKINGS AS MARKS ARE AVAILABLE FOR THE METHOD YOU USE.
Question Two
(a)
Explain the advantages of management participation in budget setting and the potential problems that may arise in the use of the resulting budget as a control mechanism. (5 marks)
(b)
Explain the advantages AND disadvantages of an overdraft as a method of short-term finance for a company. (5 marks)
(c)
A company is considering whether to develop an overseas market for its products. The cost of developing the new market is estimated to be $250,000. There is a 70% probability that the development of the new market will succeed and a 30% probability that the development of the new market will fail and no further expenditure will be incurred. If the market development is successful the profit from the new market will depend on prevailing exchange rates. There is a 50% chance that exchange rates will be in line with expectations and a profit of $500,000 will be made. There is a 20% chance that exchange rates will be favourable and a profit of $630,000 will be made and a 30% chance that exchange rates will be adverse and a profit of $100,000 will be made. The profit figures stated are before taking account of the development costs of $250,000.
Required: Demonstrate, using a decision tree, whether the company should develop an overseas market for its products. (5 marks)
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(d)
ST needs to replace its fleet of delivery vans and is considering two alternative types of van as the replacement. One of the vans has an estimated life of 4 years whilst the other has an estimated life of 5 years. The vans will be required for the foreseeable future. The estimated cash flows over the life of the van are given below: Year 0 1 2 3 4 5
Van A $ (25,000) (2,000) (2,000) (3,000) 5,000
Van B $ (30,000) (3,000) (3,000) (3,000) (4,000) 6,000
The company’s cost of capital is 8% per annum.
Required: Demonstrate, by calculation, which of the two vans should be purchased. (5 marks)
(e)
When deciding where to invest short term cash surpluses, it is necessary to consider the following two types of risk: (i) (ii)
Default risk Interest rate risk
Required: Explain what is meant by each of the TWO types of risk listed above. Your answer should include an example of each type of risk. (5 marks)
Section B continues on the next page
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Performance Operations
(f)
A company manufactures two products A and B. The budget statement below was produced using a traditional absorption costing approach. It shows the profit per unit for each product based on the estimated sales demand for the period. Product A $ 46
Selling price per unit
Product B $ 62
Production costs per unit: Material costs Labour costs Overhead costs
18 4 8
16 10 12
Profit per unit
16
24
6,000 0.5
8,000 0.8
Additional information: Estimated sales demand (units) Machine hours per unit
It has now become apparent that the machine which is used to produce both products has a maximum capacity of 8,000 hours and the estimated sales demand cannot be met in full. Total production costs for the period, excluding direct material cost, are $248,000. No inventories are held of either product.
Required: (i)
Calculate the return per machine hour for each product if a throughput accounting approach is used. (2 marks)
(ii)
Calculate the profit for the period, using a throughput accounting approach, assuming the company prioritises Product B. (3 marks) (Total for sub-question (f) = 5 marks)
(Total for Section B = 30 marks)
End of Section B. Section C begins on page 10
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Performance Operations
SECTION C – 50 MARKS [You are advised to spend no longer than 45 minutes on each question in this section.]
ANSWER BOTH QUESTIONS IN THIS SECTION. EACH QUESTION IS WORTH 25 MARKS. YOU SHOULD SHOW YOUR WORKINGS AS MARKS ARE AVAILABLE FOR THE METHOD YOU USE. Question Three A furniture company manufactures high quality dining room furniture that is sold to major retail stores. Extracts from the budget for last year are given below: Tables
Chairs
Sideboards
Sales quantity (units)
8,000
26,000
6,000
Average selling price
$2,200
$320
$2,800
Direct material cost per unit
$1,000
$160
$1,200
$400
$60
$600
$40
$6
$60
Tables
Chairs
Sideboards
Sales quantity (units)
7,200
31,000
7,800
Average selling price
$2,400
$310
$2,500
Direct material cost per unit
$1,100
$150
$1,300
$450
$60
$600
$60
$8
$80
Direct labour cost per unit Variable overhead cost per unit
The budgeted direct labour cost per hour was $20.
Actual results for last year were as follows:
Direct labour cost per unit Variable overhead cost per unit
The actual direct labour cost per hour was $18.75. Actual variable overhead cost per direct labour hour was $2.50. The company operates a just-in-time system for purchasing and production and does not hold any inventory.
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Required: (a)
Calculate the following variances for the furniture company for last year:
(i)
the sales mix contribution variance
(ii)
the sales quantity contribution variance
(3 marks) (3 marks)
(b)
Explain the meaning of the variances calculated in (a) above. You should refer to the figures calculated to illustrate your answer. (5 marks)
(c)
Prepare, for sideboards only, a statement for last year on a marginal cost basis that reconciles the budgeted contribution to the actual contribution. The statement should show the variances in as much detail as possible. (11 marks)
(d)
Explain THREE factors that a company would need to consider before deciding whether to investigate a variance. (3 marks) (Total for Question Three = 25 marks)
Section C continues on the next page
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September 2011
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Performance Operations
Question Four A major retail company which sells its ‘own brand’ products is deciding whether to open new retail outlets in a rapidly expanding overseas market. Past experience from entering other overseas markets has shown that acceptance of the brand can depend on a number of factors and that sales in the first four years are a good indicator of the potential of the market for the future. Year 1 sales will depend on how readily the brand is accepted. A consultancy firm, with experience of the overseas market, was employed at a cost of $0.5m to provide detailed information on the market and an estimate of the likelihood of the brand being accepted. The consultancy firm estimated that there is a 50% chance that the brand will be well received and sales in year 1 will be $450m, there is a 20% chance that the brand will be very well received and sales in year 1 will be $600m, and there is a 30% chance that the brand will not be well received and sales in year 1 will be $300m. Sales are then expected to increase by $100m each year, irrespective of sales in the first year. An investment of $600m is required to develop and fit out the retail outlets. The costs will be depreciated on a straight line basis over the four year period. The development and fit out costs will be eligible for tax depreciation. It is expected that the retail outlets will have a residual value of $400m at the end of four years. The residual value will be treated for tax purposes as a balancing adjustment. There will also be a requirement for $60m of working capital. The average contribution to sales ratio is expected to be 60%. Fixed costs relating to the retail outlets, including depreciation, are expected to be $150m per annum and will remain the same for the four year period. It is also anticipated that a further $50m will be spent in each of the four years on marketing the brand. The company’s financial director has provided the following taxation information: • • •
Tax depreciation: 25% reducing balance per annum. Taxation rate: 30% of taxable profits. Half of the tax is payable in the year in which it arises, the balance is paid in the following year. Any taxable losses resulting from this investment can be set against profits made by the company’s other business activities.
The company uses a post-tax cost of capital of 8% per annum to evaluate projects of this type. Ignore inflation.
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September 2011
Required: (a)
Advise the directors of the company whether they should go ahead with the investment from a financial perspective. You should use net present value (NPV) as the basis of your evaluation. Workings should be shown in $millions ($m). (12 marks)
(b) (i)
Calculate the sensitivity of the investment decision to a change in the level of annual fixed cost relating to the retail outlets i.e. not including the marketing costs. (4 marks)
(ii)
Explain the benefits of carrying out a sensitivity analysis before making investment decisions. (3 marks)
(c) (i)
Calculate the payback period of the project. (2 marks)
(ii)
Explain the reasons why a company’s management may be interested in the payback period of a project. You should use the scenario given above to illustrate your answer. (4 marks)
Total for Question Four = 25 marks)
(Total for Section C = 50 marks)
End of question paper Maths tables and formulae are on pages 15 to 18
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September 2011
PRESENT VALUE TABLE Present value of $1, that is (1+ r ) payment or receipt.
竏地
where r = interest rate; n = number of periods until
Periods (n) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
1% 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 0.853 0.844 0.836 0.828 0.820
2% 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.728 0.714 0.700 0.686 0.673
3% 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.766 0.744 0.722 0.701 0.681 0.661 0.642 0.623 0.605 0.587 0.570 0.554
4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.577 0.555 0.534 0.513 0.494 0.475 0.456
Interest rates (r) 5% 6% 0.952 0.943 0.907 0.890 0.864 0.840 0.823 0.792 0.784 0.747 0.746 0.705 0.711 0.665 0.677 0.627 0.645 0.592 0.614 0.558 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.481 0.417 0.458 0.394 0.436 0.371 0.416 0.350 0.396 0.331 0.377 0.312
7% 0.935 0.873 0.816 0.763 0.713 0.666 0.623 0.582 0.544 0.508 0.475 0.444 0.415 0.388 0.362 0.339 0.317 0.296 0.277 0.258
8% 0.926 0.857 0.794 0.735 0.681 0.630 0.583 0.540 0.500 0.463 0.429 0.397 0.368 0.340 0.315 0.292 0.270 0.250 0.232 0.215
9% 0.917 0.842 0.772 0.708 0.650 0.596 0.547 0.502 0.460 0.422 0.388 0.356 0.326 0.299 0.275 0.252 0.231 0.212 0.194 0.178
10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 0.218 0.198 0.180 0.164 0.149
Periods (n) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
11% 0.901 0.812 0.731 0.659 0.593 0.535 0.482 0.434 0.391 0.352 0.317 0.286 0.258 0.232 0.209 0.188 0.170 0.153 0.138 0.124
12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 0.287 0.257 0.229 0.205 0.183 0.163 0.146 0.130 0.116 0.104
13% 0.885 0.783 0.693 0.613 0.543 0.480 0.425 0.376 0.333 0.295 0.261 0.231 0.204 0.181 0.160 0.141 0.125 0.111 0.098 0.087
14% 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 0.237 0.208 0.182 0.160 0.140 0.123 0.108 0.095 0.083 0.073
Interest rates (r) 15% 16% 0.870 0.862 0.756 0.743 0.658 0.641 0.572 0.552 0.497 0.476 0.432 0.410 0.376 0.354 0.327 0.305 0.284 0.263 0.247 0.227 0.215 0.195 0.187 0.168 0.163 0.145 0.141 0.125 0.123 0.108 0.107 0.093 0.093 0.080 0.081 0.069 0.070 0.060 0.061 0.051
17% 0.855 0.731 0.624 0.534 0.456 0.390 0.333 0.285 0.243 0.208 0.178 0.152 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.043
18% 0.847 0.718 0.609 0.516 0.437 0.370 0.314 0.266 0.225 0.191 0.162 0.137 0.116 0.099 0.084 0.071 0.060 0.051 0.043 0.037
19% 0.840 0.706 0.593 0.499 0.419 0.352 0.296 0.249 0.209 0.176 0.148 0.124 0.104 0.088 0.079 0.062 0.052 0.044 0.037 0.031
20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.093 0.078 0.065 0.054 0.045 0.038 0.031 0.026
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Performance Operations
CUMULATIVE PRESENT VALUE TABLE Cumulative present value of $1 per annum, Receivable or Payable at the end of each year for n years
1− (1+ r ) − n r
Periods (n) 1 2 3 4 5
1% 0.990 1.970 2.941 3.902 4.853
2% 0.980 1.942 2.884 3.808 4.713
3% 0.971 1.913 2.829 3.717 4.580
4% 0.962 1.886 2.775 3.630 4.452
Interest rates (r) 5% 6% 0.952 0.943 1.859 1.833 2.723 2.673 3.546 3.465 4.329 4.212
7% 0.935 1.808 2.624 3.387 4.100
8% 0.926 1.783 2.577 3.312 3.993
9% 0.917 1.759 2.531 3.240 3.890
10% 0.909 1.736 2.487 3.170 3.791
6 7 8 9 10
5.795 6.728 7.652 8.566 9.471
5.601 6.472 7.325 8.162 8.983
5.417 6.230 7.020 7.786 8.530
5.242 6.002 6.733 7.435 8.111
5.076 5.786 6.463 7.108 7.722
4.917 5.582 6.210 6.802 7.360
4.767 5.389 5.971 6.515 7.024
4.623 5.206 5.747 6.247 6.710
4.486 5.033 5.535 5.995 6.418
4.355 4.868 5.335 5.759 6.145
11 12 13 14 15
10.368 11.255 12.134 13.004 13.865
9.787 10.575 11.348 12.106 12.849
9.253 9.954 10.635 11.296 11.938
8.760 9.385 9.986 10.563 11.118
8.306 8.863 9.394 9.899 10.380
7.887 8.384 8.853 9.295 9.712
7.499 7.943 8.358 8.745 9.108
7.139 7.536 7.904 8.244 8.559
6.805 7.161 7.487 7.786 8.061
6.495 6.814 7.103 7.367 7.606
16 17 18 19 20
14.718 15.562 16.398 17.226 18.046
13.578 14.292 14.992 15.679 16.351
12.561 13.166 13.754 14.324 14.878
11.652 12.166 12.659 13.134 13.590
10.838 11.274 11.690 12.085 12.462
10.106 10.477 10.828 11.158 11.470
9.447 9.763 10.059 10.336 10.594
8.851 9.122 9.372 9.604 9.818
8.313 8.544 8.756 8.950 9.129
7.824 8.022 8.201 8.365 8.514
Periods (n) 1 2 3 4 5
11% 0.901 1.713 2.444 3.102 3.696
12% 0.893 1.690 2.402 3.037 3.605
13% 0.885 1.668 2.361 2.974 3.517
14% 0.877 1.647 2.322 2.914 3.433
Interest rates (r) 15% 16% 0.870 0.862 1.626 1.605 2.283 2.246 2.855 2.798 3.352 3.274
17% 0.855 1.585 2.210 2.743 3.199
18% 0.847 1.566 2.174 2.690 3.127
19% 0.840 1.547 2.140 2.639 3.058
20% 0.833 1.528 2.106 2.589 2.991
6 7 8 9 10
4.231 4.712 5.146 5.537 5.889
4.111 4.564 4.968 5.328 5.650
3.998 4.423 4.799 5.132 5.426
3.889 4.288 4.639 4.946 5.216
3.784 4.160 4.487 4.772 5.019
3.685 4.039 4.344 4.607 4.833
3.589 3.922 4.207 4.451 4.659
3.498 3.812 4.078 4.303 4.494
3.410 3.706 3.954 4.163 4.339
3.326 3.605 3.837 4.031 4.192
11 12 13 14 15
6.207 6.492 6.750 6.982 7.191
5.938 6.194 6.424 6.628 6.811
5.687 5.918 6.122 6.302 6.462
5.453 5.660 5.842 6.002 6.142
5.234 5.421 5.583 5.724 5.847
5.029 5.197 5.342 5.468 5.575
4.836 4.988 5.118 5.229 5.324
4.656 7.793 4.910 5.008 5.092
4.486 4.611 4.715 4.802 4.876
4.327 4.439 4.533 4.611 4.675
16 17 18 19 20
7.379 7.549 7.702 7.839 7.963
6.974 7.120 7.250 7.366 7.469
6.604 6.729 6.840 6.938 7.025
6.265 6.373 6.467 6.550 6.623
5.954 6.047 6.128 6.198 6.259
5.668 5.749 5.818 5.877 5.929
5.405 5.475 5.534 5.584 5.628
5.162 5.222 5.273 5.316 5.353
4.938 4.990 5.033 5.070 5.101
4.730 4.775 4.812 4.843 4.870
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FORMULAE PROBABILITY A ∪ B = A or B. A ∩ B = A and B (overlap). P(B | A) = probability of B, given A. Rules of Addition If A and B are mutually exclusive: If A and B are not mutually exclusive:
P(A ∪ B) = P(A) + P(B) P(A ∪ B) = P(A) + P(B) – P(A ∩ B)
Rules of Multiplication If A and B are independent:: If A and B are not independent:
P(A ∩ B) = P(A) * P(B) P(A ∩ B) = P(A) * P(B | A)
E(X) = ∑ (probability * payoff)
DESCRIPTIVE STATISTICS Arithmetic Mean
x =
∑x n
x=
∑ fx ∑f
(frequency distribution)
Standard Deviation
SD =
∑( x − x ) 2 n
SD =
∑ fx 2 − x 2 (frequency distribution) f ∑
INDEX NUMBERS Price relative = 100 * P1/P0
Price:
Quantity:
Quantity relative = 100 * Q1/Q0
P ∑ w ∗ 1 Po ∑w
x 100
Q ∑ w ∗ 1 Qo x 100 ∑w
TIME SERIES Additive Model Series = Trend + Seasonal + Random Multiplicative Model Series = Trend * Seasonal * Random
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FINANCIAL MATHEMATICS Compound Interest (Values and Sums) Future Value S, of a sum of X, invested for n periods, compounded at r% interest S = X[1 + r]
n
Annuity Present value of an annuity of £1 per annum receivable or payable for n years, commencing in one year, discounted at r% per annum:
PV =
1 1 1 − r [1 + r ] n
Perpetuity Present value of £1 per annum, payable or receivable in perpetuity, commencing in one year, discounted at r% per annum: PV =
1 r
LEARNING CURVE b
Yx = aX
where: Yx = the cumulative average time per unit to produce X units; a = the time required to produce the first unit of output; X = the cumulative number of units; b = the index of learning. The exponent b is defined as the log of the learning curve improvement rate divided by log 2. INVENTORY MANAGEMENT Economic Order Quantity 2C o D
EOQ =
Ch
where:
Co Ch D
= = =
cost of placing an order cost of holding one unit in inventory for one year annual demand
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LIST OF VERBS USED IN THE QUESTION REQUIREMENTS A list of the learning objectives and verbs that appear in the syllabus and in the question requirements for each question in this paper. It is important that you answer the question according to the definition of the verb. LEARNING OBJECTIVE Level 1 - KNOWLEDGE What you are expected to know.
Level 2 - COMPREHENSION What you are expected to understand.
VERBS USED
DEFINITION
List State Define
Make a list of Express, fully or clearly, the details/facts of Give the exact meaning of
Describe Distinguish Explain
Communicate the key features Highlight the differences between Make clear or intelligible/State the meaning or purpose of Recognise, establish or select after consideration Use an example to describe or explain something
Identify Illustrate Level 3 - APPLICATION How you are expected to apply your knowledge.
Apply Calculate Demonstrate Prepare Reconcile Solve Tabulate
Level 4 - ANALYSIS How are you expected to analyse the detail of what you have learned.
Level 5 - EVALUATION How are you expected to use your learning to evaluate, make decisions or recommendations.
September 2011
Analyse Categorise Compare and contrast
Put to practical use Ascertain or reckon mathematically Prove with certainty or to exhibit by practical means Make or get ready for use Make or prove consistent/compatible Find an answer to Arrange in a table
Construct Discuss Interpret Prioritise Produce
Examine in detail the structure of Place into a defined class or division Show the similarities and/or differences between Build up or compile Examine in detail by argument Translate into intelligible or familiar terms Place in order of priority or sequence for action Create or bring into existence
Advise Evaluate Recommend
Counsel, inform or notify Appraise or assess the value of Advise on a course of action
19
Performance Operations
Performance Pillar
Operational Level Paper
P1 – Performance Operations
September 2011
Performance Operations
20
September 2011