Lesson Plan

• Describe the purpose of budgeting and differentiate incremental, flexible, and zero‑based budgets.
• Explain the main advantages and disadvantages of each budgeting approach.
• Apply budgeting concepts to a case study by selecting an appropriate budget type and justifying the choice.
• Analyse a simple cost‑driver scenario using the flexible‑budget formula.
• Evaluate which budgeting method best fits a given business environment.

• Projector and screen
• Whiteboard and markers
• Printed handouts summarising the three budget types and the comparison table
• Budget worksheet with sections for incremental, flexible, and zero‑based budgets
• Calculators
• Sticky notes for group brainstorming

Begin with a quick poll: “Who tracks a personal budget each month?” Use the responses to highlight why budgeting matters for individuals and businesses. Briefly recap the role of budgets as planning and control tools, then state that today’s success criteria are to compare three budgeting approaches and choose the most suitable one for a given scenario.

1. Do‑now (5'): Students write their monthly personal expenses on sticky notes and display them; teacher links this to the concept of a budget.
2. Mini‑lecture (10'): Define budgeting purpose and introduce incremental, flexible, and zero‑based budgets using a slide deck.
3. Comparative analysis (10'): In pairs, students examine the provided comparison table, discuss advantages/disadvantages, and record key points on their worksheets.
4. Flexible‑budget activity (12'): Groups calculate total cost using F + c × Q for a supplied scenario and interpret the variance.
5. Zero‑based budgeting simulation (12'): Each group justifies a set of mock department expenses starting from zero and presents the strongest arguments.
6. Whole‑class debrief (6'): Teacher summarises which budgeting method fits stable, variable, or strategic‑change environments; highlights key take‑aways.

Recap the three budgeting approaches and their ideal contexts. For the exit ticket, ask students to write which budget they would recommend for a start‑up tech firm and why. Assign homework: complete a short worksheet that requires selecting and justifying a budgeting method for a given case study.