Introduction

There are many different types of business costs and to help keep better track of them they are categorized using specific business management key terms.

 

Those labeled “fixed costs” do not change according to how many products are produced or how much service is provided. For example, the lights in an office are always going to be on regardless of much work happens. The rent is also not affected by the amount of products produced.

 

The costs that are called “variable” are just that. They change depending on how many products are produced or how much service a company offers its clients. For example, a furniture manufacturer will have to spend more money on lumber if they get more orders.  A lawn service company will need to fill their lawn mowers with more gasoline if they get more customers that need their lawn mowed.

 

Some costs are called “direct” costs because they happen as a direct result of producing more products or delivering more service. Other costs are called “indirect” costs because they happen simply because the company exists. An example of this are the costs of office supplies in a school's various admin offices.

 

This chapter also discusses the key term “revenue” which refers to all the money that enters a company’s bank account. Revenue can arrive from multiple revenue "streams". These streams are simply various sources of income. For example: money for a business can come from sales of products, from sponsorships, from donations, from consulting, or any other creative idea that funnels money into a business.

Course curriculum

  • 1

    Course Information & Support

    • Please Check Now That Your Phone Is In Your Bag. Please Stay For 40 Minutes Of Learning & Sign Out For The Bathrrom During The Last 5 Minutes of Class.

    • Fact Sheet Packet Of Class Policies- Please Scroll Through And Review Again

    • How Well Are You Demonstrating The IB Learner Characteristics? Which Is Your Super Power & Which Presents The Greatest Challenge?

    • Welcome IB Business Management Student

    • The New 5th Edition Of Our Entire Textbook Can Be Accessed In Schoology (& TEAMS)

    • Chapter Work Cycle = This Is What We Are Doing In Class & For Homework Every Day

    • Finished Early? Don't Pack Up! Do This ...

    • Please Don't Disrupt Our 40 Minute Work Cycle. Leave For The Bathroom During The LAST 5 MINUTES Of Class.

    • Your Quarter Grade
  • 2

    Your Notebook Is Your Most Important Weekly Grade & Prepares You For The May Exams

    • New Textbook Chapter 3.3 = 8 Headings

    • Read The Rules For Your Notebook Before Every Grading Day. This Paper Must Be Stapled Onto The Inside Cover Of Each Composition Notebook.

    • Video: Watch A Spider Map Being Created (Best Study Tool)

    • How To Draw A Spider Map

    • LOOK: Page-By-Page Visual Instructions For Earning a 100% On Every Notebook Chapter. (NEW For 2024)

    • Video: Take A Tour Of A Business Management Composition Notebook

    • This Is How Your Notebook Pages Will Be Graded

    • Notebook Checklist & Reflection Sheet- Print, Complete, And Staple Onto The Last Page Of Your Chapter Notes BEFORE Scoring Day. It's Best To Pick Up This Blue Color Checklist In Class After We Finish The Chapter Review.
  • 3

    "RESOURCE BANK" = Topic Lessons (40) Begin Below this Point:

    • What is the Resource Bank?

    • RB = 10 Sections & 40 Posts (= 2 RB Days + HW)

    • What You Should be Able to Do By the End of this Chapter
  • 4

    The Importance of Cost Data

    • Introduction to Costs and Revenues

    • Video: The Difference Between Cost And Price

    • There Are 5 Different Types Of Costs In Our Syllabus

    • The Purposes of Cost Data

    • Business Decisions Require Cost Data

    • What Does A Business Do With Its Cost Data?
  • 5

    Production Costs: FIXED COSTS

    • Video: What Is A Fixed Cost?
  • 6

    Production Costs: VARIABLE COSTS

    • Video: A Comparison Of Fixed and Variable Costs Using Examples

    • Video: Dog Breeder Example Of Fixed and Variable Costs

    • Video: What Are Variable Costs From An Econ Perspective?

    • Video: How To Calculate Total Variable Costs (TVC) You May Need To Play This Video At Home.
  • 7

    Production Costs: SEMI-VARIABLE COSTS

    • Video: Definition Of Semi-Variable Costs
  • 8

    Production Costs: DIRECT VERSUS INDIRECT COSTS

    • Video: A Comparison Of Direct & Indirect Costs (Overhead) In A Cake Business
  • 9

    How To Calculate ALL The Costs Of Production and Create Cost Curves (Micro Economics Lessons)

    • Video: How Do You Calculate The Average Total Costs Of Producing A Product?

    • Video Part 1: How To Calculate Fixed Costs, Variable Costs, Total Costs, and Marginal Costs

    • Video Part 2: How To Take The Numbers From Your Calculations And Create Cost Curves

    • Video Part 3: Find Out Why Some Cost Curves Go Down And Then Up

    • Handout: Understanding Cost Curves & AVERAGE COSTS

    • Best Explanation Of How Average Costs Are Affected By Economies & Diseconomies Of Scale
  • 10

    Revenue vs Profit

    • Video: What's The Difference Between Revenue And Profit?

    • Bar Graph: Apple's Profit vs Revenue 2012-2018

    • Video: Profit and Revenue Exam Review

    • Exam Tip- 4 Things To Say About Revenue

    • Financial Report Video: Listen For The Key Terms You Have Learned

    • Video: How To Calculate Profit & Then Graph It Using a Calculator

  • 11

    Revenue Streams

    • Infographic: Revenue Streams Inside 5 Big Tech Companies

    • Graphic: Apple's Revenue Streams

    • What Else Counts As Revenue?

    • Example: This Gym Has Multiple Revenue Streams

    • Example: This Urban Farmer Has Multiple Revenue Streams

    • Video: Dividends Are Also A Source Of Revenue For Companies , Not Just Individuals.

    • Key Term: Subventions = Subsidies
  • 12

    How To Calculate Business Costs

    • Handout: Table Of Cost & Revenue Formulas

    • Video: How To Calculate Total Fixed Costs (TFC)

    • Video: How To Calculate Total Variable Costs (TVC)

    • Video: Introduction To Variable Costs & How They Differ From Fixed Costs & How To Calculate Total Costs

    • Video: How An Investor Looks At Total Variable Costs (TVC=Total Quantity of Output x Variable Cost Per Unit of Output)

    • Memorize The Revenue Formulas

    • Video: Business Algebra To Figure Out Profit (Break-even)

    • What's The Difference Between Absorption Costing & Variable Costing (also called Contribution Costing)?
  • 13

    Costs, Revenues & The CCES Concepts (Creativity-Change-Ethics-Sustainability)

    • Read These CCES Definitions. If You Write Them On Your May Exams You Get Credit For Clear Evidence of "Synthesis & Evaluation"

    • CCES Assignment: Write 4 CCES Impact Statements For This Chapter Following The Given Model

    • Finished Early? Don't Pack Up! Do This ...
  • 14

    Let's Do Some Case Studies

    • Visual Of Case Study Day 1 Process

    • Day 1 Participation Requirements During Sharing

    • Instructions for Analyzing Case Studies

    • What Are Command Terms & Why Are They Important?

    • New Command Terms Definitions List (2024+) Exams = Rules for Answering Test Questions

    • Old Command Terms List = Rules for Answering Test Questions

    • New 3.3 Assigned Case Studies

    • Show Your Teacher Your Completed Case Studies Then ...

    • Visual Of Case Study Day 2 Process (Show & Tell Your Presentation- Don't Pass Around Your Notes- Give Command Term Definitions)

    • Finished Early? Don't Pack Up! Do This ...
  • 15

    Review Activities

    • WATCH: 3.3 Chapter Review

    • EXAM TIP!

    • Video: Mr. B's 3.3 Review

    • Instruction Sheet for Review Assignment

    • What Should You Do If You Get Stuck On A Question? Don't Skip It! Do This...

    • New 3.3 Review Worksheets With 7 Tasks 1-15 M/C (Title The Top Of A New Page. Then Label The Tasks And Write The Answers In Your Composition Notebook)

    • Put Away Your Pen & Pencil On Review Day- Only Have A Color Pen On Your Desk

    • Quizlet

    • Have You Achieved the Key Learning Outcomes?

    • You Are Almost Finished!

    • Don't Forget The Last Piece!

    • Finished Early? Don't Pack Up! Do This ...

    • Memorize & Review The 3.3 Formulas For The IB Exams With Quizlet
  • 16

    May Exam Review & Practice: Do These Practice Questions Before Your May Exams (Don't Look At The Markscheme Until You Have Written A Complete Answer)

    • Exam Practice: 10 Marks For Total Costs (Careful Not To Scroll & See The Answers Before Writing Your Own)

    • Exam Practice: Revenue Streams (Don't Look At Answers Before Writting Your Own)
  • 17

    3.3 Quiz Scheduled

    • Come Here On Quiz Day If You Are In The Classroom - Makeups Are On The Day You Return

    • Visual: Quiz Day Schedule Of Activities