At a glance
Sittings: March, June, September and December
Location: Exam centre or remote invigilation
Duration: 2.5 hours
Overview
Format: The exam consists of two compulsory questions based on two separate business scenarios.
- Each question covers multiple areas of the syllabus and has several requirements.
- Each question is built around a fictional business case study and covers a range of different industries and types of organisations. Information, including visualisations, often appears in exhibits as well as in the main body of the scenario.
- Each question can assess one or more of: analysis of the current situation; evaluation of strategic options; choice and implementation of a chosen strategy.
- Ethics, sustainability and technology are embedded competences which will appear in all exams.
- Analysis of data in a pre-populated spreadsheet is required in each question, but the scale of the data may differ.
- The two questions total 100 marks. The split of marks between the questions varies, with the longer question typically 55 to 65 marks and the shorter question typically 35 to 45 marks.
Pass mark: 55%
Syllabus weightings
Questions test across the whole syllabus. The relative weightings of subjects below should guide the relative study time spent on each.
- Strategic analysis (30-40%)
- Strategic choice (30-40%)
- Implementation and monitoring of strategy (20-30%)
- Ethics (5-10%)
Please note these are indicative long-term weightings and may vary from exam to exam.
Need to know
Business judgement and strategic thinking are core skills essential to accountancy, and preparation for this exam is designed to help you develop yours. You will need to quickly understand an unfamiliar business and analyse and interpret the information provided, since part of the exam requirements will assess your analysis. You will then recommend what should happen next, explaining your reasoning clearly and concisely using the relevant quantitative and qualitative information provided.
Although it includes numbers and spreadsheet data, this exam asks you to use those numbers to support a written discussion. You will be expected to link calculations to narrative conclusions, just as you would if you were advising a client or working in a business.
This exam helps support the progression to Advanced Level and builds your communication skills by requiring a combination of quantitative evidence with clear explanation. It also encourages you to use business acumen and to ‘think on your feet’ by developing your own ideas and suggestions arising from the scenario to solve particular problems.
Things to avoid
- Not revising content and knowledge in the workbook - the exam is skills based, but you need a basic core knowledge as a basis on which to apply skills.
- Failing to see the bigger picture – you need to get the key points across, even if you can’t include the more trivial points.
- Writing overlong answers disproportionate to the marks available – particularly at the start of the exam.
- Omitting a requirement altogether – make some attempt to include something that is right and relevant, even if it is brief. If you write nothing, you get nothing.
- Mismanaging your time
How to approach the exam
Practice is key. Practise questions under timed conditions and rehearse how you will structure complete answers – don’t just make notes. Your goal in practising is to replicate exam-day performance:
- Read.
- Step back to consider how to approach each question, especially the data and the required calculations.
- Analyse.
- Calculate where needed.
- Write a coherent and professional response, linking numbers and narrative, including conclusions and recommendations where appropriate.
Focus on your exam technique: attempt all requirements, be mindful of the marks available for each one, anchor discussion in the numbers where relevant, and finish open-ended requirements with a clear conclusion and justified actions as suited.
In the exam, engage with the scenario and the data in the spreadsheets, analyse spreadsheet data using formulae and use the results of your calculations as the foundation for your evaluation and discussion. Read each requirement several times, underlining key words. Avoid stream-of-consciousness answers that repeat general textbook knowledge without applying it to the scenario and the requirement.
Remember: manage your time tightly. If you feel stuck on part of a requirement, make the points you can and then move on. You’ll usually score most marks from the main points early; chasing a couple of extra points can cost you marks elsewhere.
Top tips for success
- Practise full questions under timed conditions (including doing questions back-to-back to simulate switching scenarios).
- Use the numbers: include supporting calculations and link them to your discussions and recommendations.
- For open-ended , 'Think on your feet'requirements where appropriate recommend a course of action and justify the steps you would take.
- Attempt to answer all the requirements and manage your time carefully.
Read more about Business and Digital Strategy in the ACA Syllabus Handbook.