Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business
Lesson Topic: cost information for decision-making purposes, e.g. average, marginal and total costs
Learning Objective/s:
  • Describe total, average and marginal cost concepts and their formulas.
  • Explain how cost information informs pricing, product‑line, make‑or‑buy and shutdown decisions.
  • Apply cost calculations to a real‑world scenario to evaluate a short‑run production decision.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed worksheet with cost data and decision‑making questions
  • Calculator or spreadsheet software
  • Cost‑curve diagram handout
 Introduction:
Begin with a quick poll: “What factors do you consider when setting a price?” Connect this to prior knowledge of revenue and profit. Explain that by the end of the lesson students will be able to use cost information to make key business decisions.
Lesson Structure:
  1. Do‑now (5'): Students write on sticky notes the factors influencing price.
  2. Mini‑lecture (10'): Review total, average and marginal cost formulas with simple examples.
  3. Guided practice (12'): Work through the provided worked example, calculate costs and discuss the decision implication.
  4. Decision‑making stations (15'): Small groups rotate through four stations (pricing, product‑line, make‑or‑buy, shutdown) using the worksheet to apply cost data.
  5. Whole‑class debrief (8'): Groups share conclusions; teacher highlights correct use of cost information.
  6. Exit ticket (5'): Students write one decision they could make using cost information and the specific cost metric required.
Conclusion:
Recap the three cost concepts and how each supports different business decisions. Collect exit tickets as a retrieval check and assign a homework case study where students analyse a company’s cost data to recommend a pricing strategy.