Lesson Plan

• Define a budget and explain its main purposes.
• Calculate and interpret variance amounts and percentages.
• Distinguish between static and flexible budgets for performance measurement.
• Apply the seven‑step budgeting cycle to monitor and improve business performance.
• Evaluate variance analysis results to recommend corrective actions.

• Projector and screen
• Whiteboard and markers
• Printed worksheet with sample variance table
• Calculators (or spreadsheet software)
• Budget‑cycle flowchart handout
• Student laptops (optional)

Begin with a headline about a company that missed its profit target to spark curiosity. Review students’ prior knowledge of what a budget is and its key purposes. Explain that by the end of the lesson they will be able to calculate variances and use the budgeting cycle to assess performance.

1. Do‑now (5') – Quick quiz on budget purposes and terminology.
2. Mini‑lecture (10') – Define budgets, outline purposes, and compare static vs flexible budgets.
3. Guided practice (15') – Students calculate variance (£ and %) from the provided table.
4. Group activity (15') – Apply the seven‑step budgeting cycle to a case study and complete a flowchart.
5. Whole‑class discussion (10') – Analyse group findings, identify favourable/unfavourable variances and suggest corrective actions.
6. Exit ticket (5') – Write one sentence summarising how budgets measure performance.

Recap the definition of a budget, how variances are calculated, and the steps of the budgeting cycle. Collect exit tickets to check understanding, and assign homework: each student creates a simple budget for a mock product and prepares a variance analysis.