Lesson Plan

Resources → Subject Notes → Business → Notes
Lesson Plan
Grade: Date: 25/02/2026
Subject: Business
Lesson Topic: how costs can be used to monitor and improve business performance, including using cost information to calculate profits
Learning Objective/s:
  • Describe the different types of costs (fixed, variable, direct, indirect) and their relevance to business decisions.
  • Explain how cost information is used to set performance targets, monitor variances and improve efficiency.
  • Apply cost data to calculate profit, break‑even point and make pricing or make‑or‑buy decisions.
  • Analyse cost‑volume‑profit relationships to forecast profit changes.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed handout of cost types table
  • Calculators
  • Worksheets with profit and break‑even calculations
  • Sticky notes for the opening activity
 Introduction:

Start with a quick poll: “What costs do you think a coffee shop must track?” Connect responses to the previous lesson on revenue. Explain that today’s success criteria are to classify costs, use cost data to monitor performance and calculate profit.
Lesson Structure:
  1. Do‑now (5'): Students write examples of business costs on sticky notes and post them on the board.
  2. Mini‑lecture (10'): Review fixed, variable, direct and indirect costs with slides and the printed handout.
  3. Guided practice (12'): In pairs, complete a profit‑calculation worksheet using the provided cost figures.
  4. Variance analysis activity (10'): Groups compare sample actual vs. budgeted costs, identify favourable/unfavourable variances and suggest corrective actions.
  5. Break‑even demonstration (8'): Teacher models the break‑even formula on the projector; students calculate the break‑even point for a new scenario.
  6. Application discussion (10'): Whole‑class discussion on how cost information informs pricing, product‑mix and make‑or‑buy decisions.
  7. Check for understanding (5'): Quick quiz/exit ticket with three short questions on cost types and profit calculation.
Conclusion:

To wrap up, we revisited how different cost categories feed into performance monitoring, profit calculation and break‑even analysis. For the exit ticket, each student writes one way cost information can improve a business decision. Homework: complete the CVP analysis worksheet using a new set of cost figures.