| Lesson Plan |
| Grade: |
Date: 03/03/2026 |
| 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:
- Do‑now (5'): Students write on sticky notes the factors influencing price.
- Mini‑lecture (10'): Review total, average and marginal cost formulas with simple examples.
- Guided practice (12'): Work through the provided worked example, calculate costs and discuss the decision implication.
- Decision‑making stations (15'): Small groups rotate through four stations (pricing, product‑line, make‑or‑buy, shutdown) using the worksheet to apply cost data.
- Whole‑class debrief (8'): Groups share conclusions; teacher highlights correct use of cost information.
- 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.
|