Lesson Plan

Resources → Subject Notes → Business → Notes
Lesson Plan
Grade: Date: 17/01/2026
Subject: Business
Lesson Topic: the calculation and interpretation of variances
Learning Objective/s:
  • Describe what a variance is and differentiate favourable vs unfavourable variances.
  • Apply the basic variance formulas to calculate revenue, cost, and profit variances.
  • Analyse variance results to identify underlying causes and suggest managerial actions.
Materials Needed:
  • Projector or interactive whiteboard
  • Slide deck with formulas and examples
  • Printed worksheet with the June case‑study data
  • Calculator or spreadsheet software
  • Whiteboard markers
  • Exit‑ticket slips
 Introduction:
Begin with a quick poll: “When a budget misses its target, what do you think managers look at first?” Build on students’ prior experience of budgeting from earlier lessons. Explain that by the end of the lesson they will be able to calculate key variances, label them correctly, and interpret the results to inform decisions.
Lesson Structure:
  1. Do‑now (5’) – Short quiz on budget vs actual definitions.
  2. Mini‑lecture (10’) – Review variance concepts and formulas using slides.
  3. Guided practice (15’) – Work through the June example together, completing calculations on the board.
  4. Pair activity (12’) – Students calculate revenue, cost, and profit variances for a new dataset on the worksheet.
  5. Analysis discussion (10’) – Groups identify possible causes for each variance and present findings.
  6. Check for understanding (8’) – Rapid‑fire questions and exit‑ticket submission summarising one favourable and one unfavourable variance with a recommended action.
Conclusion:
Summarise that variance analysis links actual performance to budgeted expectations and drives corrective decisions. Collect exit tickets to gauge immediate understanding. For homework, assign a brief case where students must compute and interpret variances for a different product line using a spreadsheet.