ACCA PERFORMANCE MANAGEMENT (PM)
200 Original Practice Questions + Answers
September 2026 – June 2027
Independent revision resource. Questions are newly written and are not copied from ACCA, BPP, Kaplan or other publishers.
How to use this question bank
First attempt each question without the answer. For calculation questions, write the formula and workings. For written questions,
use the pattern point → explanation → scenario implication. After each set, mark weak areas and revisit the relevant section of
your revision guide.
ACCA PM 2026/27 — 200 Original Practice Questions Page 1
, Section A — Management Information & Data Analytics
Section A — Management Information & Data Analytics
1. A transaction processing system is mainly designed to do what?
Answer: Capture and process routine operational transactions such as sales, purchases and payroll.
2. Give two characteristics of useful management information.
Answer: It should be relevant and timely; other valid characteristics include accuracy, completeness, understandability and
cost-effectiveness.
3. A manager receives a sales report three weeks after the decision window. Which information characteristic is most
clearly weak?
Answer: Timeliness.
4. Explain the difference between data and information.
Answer: Data are raw facts; information is processed and organised data that has meaning for a user or decision.
5. A dashboard shows sales of $1.2m this month versus $1.0m last month. Give two follow-up questions.
Answer: Ask what caused the increase and whether the increase came with changes in margin, volume, product mix, customers or
other relevant factors.
6. What is diagnostic analytics used for?
Answer: Understanding why an outcome occurred.
7. What is predictive analytics used for?
Answer: Estimating or assessing likely future outcomes using available data and models.
8. What is prescriptive analytics concerned with?
Answer: Identifying or evaluating actions that could be taken given predicted outcomes and constraints.
9. State the three commonly cited 'V' dimensions of big data.
Answer: Volume, velocity and variety.
10. Why does high data volume not automatically create better decisions?
Answer: Poor-quality, irrelevant or badly governed data can increase noise and complexity without improving decision quality.
11. A company collects customer complaints but does not record the product, location or date. What problem may arise?
Answer: The data may lack context, making root-cause analysis and comparison difficult.
12. What is an ERP system intended to achieve?
Answer: Integration of business processes and information across functions using a common system/data environment.
13. Give one advantage and one risk of integrated information systems.
Answer: Advantage: reduced duplication and better information flow. Risk: system-wide failure, cyber exposure or poor implementation
can affect many processes.
14. Why is data governance important?
Answer: It establishes responsibilities, quality standards, access controls and rules for managing data.
15. What is a data warehouse generally used for?
Answer: Storing integrated historical data for reporting and analysis.
16. A correlation of 0.85 is found between advertising spend and sales. Can management conclude advertising caused the
sales increase?
Answer: No. Correlation indicates association, not causation; other variables may explain the relationship.
17. What does a positive correlation indicate?
Answer: As one variable increases, the other tends to increase in a linear relationship, subject to the strength of the correlation.
ACCA PM 2026/27 — 200 Original Practice Questions Page 2
200 Original Practice Questions + Answers
September 2026 – June 2027
Independent revision resource. Questions are newly written and are not copied from ACCA, BPP, Kaplan or other publishers.
How to use this question bank
First attempt each question without the answer. For calculation questions, write the formula and workings. For written questions,
use the pattern point → explanation → scenario implication. After each set, mark weak areas and revisit the relevant section of
your revision guide.
ACCA PM 2026/27 — 200 Original Practice Questions Page 1
, Section A — Management Information & Data Analytics
Section A — Management Information & Data Analytics
1. A transaction processing system is mainly designed to do what?
Answer: Capture and process routine operational transactions such as sales, purchases and payroll.
2. Give two characteristics of useful management information.
Answer: It should be relevant and timely; other valid characteristics include accuracy, completeness, understandability and
cost-effectiveness.
3. A manager receives a sales report three weeks after the decision window. Which information characteristic is most
clearly weak?
Answer: Timeliness.
4. Explain the difference between data and information.
Answer: Data are raw facts; information is processed and organised data that has meaning for a user or decision.
5. A dashboard shows sales of $1.2m this month versus $1.0m last month. Give two follow-up questions.
Answer: Ask what caused the increase and whether the increase came with changes in margin, volume, product mix, customers or
other relevant factors.
6. What is diagnostic analytics used for?
Answer: Understanding why an outcome occurred.
7. What is predictive analytics used for?
Answer: Estimating or assessing likely future outcomes using available data and models.
8. What is prescriptive analytics concerned with?
Answer: Identifying or evaluating actions that could be taken given predicted outcomes and constraints.
9. State the three commonly cited 'V' dimensions of big data.
Answer: Volume, velocity and variety.
10. Why does high data volume not automatically create better decisions?
Answer: Poor-quality, irrelevant or badly governed data can increase noise and complexity without improving decision quality.
11. A company collects customer complaints but does not record the product, location or date. What problem may arise?
Answer: The data may lack context, making root-cause analysis and comparison difficult.
12. What is an ERP system intended to achieve?
Answer: Integration of business processes and information across functions using a common system/data environment.
13. Give one advantage and one risk of integrated information systems.
Answer: Advantage: reduced duplication and better information flow. Risk: system-wide failure, cyber exposure or poor implementation
can affect many processes.
14. Why is data governance important?
Answer: It establishes responsibilities, quality standards, access controls and rules for managing data.
15. What is a data warehouse generally used for?
Answer: Storing integrated historical data for reporting and analysis.
16. A correlation of 0.85 is found between advertising spend and sales. Can management conclude advertising caused the
sales increase?
Answer: No. Correlation indicates association, not causation; other variables may explain the relationship.
17. What does a positive correlation indicate?
Answer: As one variable increases, the other tends to increase in a linear relationship, subject to the strength of the correlation.
ACCA PM 2026/27 — 200 Original Practice Questions Page 2
