BSG 1.3.2 Fixed and variable costs

Learning question(s)
  • What is the difference between fixed costs and variable costs?
  • How do fixed and variable costs affect a business's profit?
 Mins Activities Teacher Notes Resources
 1: Carry out tasks on projector screen.  Welcome
 2: Discuss the slideshow.  Slideshow: 2key terms - fixed and variable costs.pptx
 3:Choose a small business. Write a list of fixed and variable costs, explaining why each is fixed or variable.
 Cost examples
 4: Extension choices:
 - Find out how much small businesses in Norwich are likely to pay for some fixed costs. eg, how much does a small shop or office cost to rent?
- Convert one of the calculation tables from the worksheet into a spreadsheet. Use formulas for the calculations, so that the totals change automatically if the revenues and costs change. Decide on a target profit and change the revenues and costs to achieve the target.
  Extension tasks
  Review lesson