Lesson Plan

• Describe the purpose and key components of a business budget.
• Evaluate at least three benefits of budgeting for planning, coordination and control.
• Analyse three potential drawbacks such as rigidity, time‑consumption and demotivation.
• Apply budgeting formulas to calculate a simple budgeted profit.
• Compare how variance analysis can be used to improve performance after a budgeting period.

• Projector or interactive whiteboard
• Slide deck on budgeting concepts
• Printed worksheet with case study and calculation tasks
• Calculator or spreadsheet software
• Whiteboard and markers
• Exit‑ticket cards

Start with a quick poll: “What financial tool helps a business set targets and monitor performance?” Connect responses to prior knowledge of revenue and cost planning, then explain that today students will explore both the advantages and the limitations of budgets. State that by the end of the lesson they will be able to evaluate when budgeting adds value and when it may hinder flexibility.

1. Do‑now (5’) – Students list examples of financial tools they know and share one with the class.
2. Mini‑lecture (10’) – Define a budget, outline its components and purposes using the slide deck.
3. Group activity (15’) – In small groups, analyse a provided case to identify three benefits and three drawbacks; record findings on the worksheet.
4. Calculation practice (10’) – Using the sample data, calculate budgeted revenue, variable cost, contribution and profit; discuss results.
5. Variance analysis discussion (10’) – Explain how variance analysis can improve performance; students answer the application question on the worksheet and the teacher provides feedback.

Recap that budgets act as both planning and control tools but must retain flexibility to avoid rigidity. For the exit ticket, each student writes one benefit and one drawback of budgeting. Homework: research a real‑world company’s budgeting approach and write a brief reflection on how it balances discipline with adaptability.