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.

    • Only Use The Laptop Assigned To You

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

    • Supply Check Is On The First Resource Bank Day Of Each Quarter

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

    • Do You Skip Class?

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

    • Meet Your Teacher: Dr. Eva Bogard

    • You Should Do An Internship Every Year Until You Graduate From College

    • Welcome IB Business Management Student

    • Here Is The Master Plan...

    • The IB BM Syllabus Consists Of 5 Units With A Total Of 40 Total Chapters ("Courses") That You Are Responsible For Learning

    • The Official IB Business Management Guide & Syllabus

    • The Full IB BM Textbook Is In TEAMS

    • Chapter Work Cycle =The Same 7 Day Format For Each Chapter. You Always Know What We Are Doing In Class & What Is Assigned For Homework.

    • DUE DATES & DEADLINES

    • Late With A Good Reason Is Still Late (Missing Work Submitted After 5 Calendar Days = 0%).

    • Your Makeup Day From An Absence Is The Following Class Day. Read Instructions Carefully & Review Policies When Absent.

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

    • Finished Early? Keep Track Of Current Events In The Business World

    • Business Careers. Which Is A Good Fit For You?
  • 2

    The Notebook Project - A Daily Learning & Study Tool

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

    • Your Notebook Project Helps You Build Strong Attention To Detail. This Is A Valuable Life Skill.

    • LOOK: Page-By-Page Visual Instructions To Help You Earn a 100% On Every Notebook Project.

    • A 100% Notebook Project Sample - Make Yours Just As Nice.

    • A 100% Notebook Project Sample - Compare Yours.

    • Notebook Checklist & Reflection Sheet (The Blue Sheet). Complete & Staple Onto The Last Page Of Your Chapter Notes BEFORE Scoring Day. This Blue Color Checklist Is Available In Class Or You Can Print It Yourself.
  • 3

    Start Your Notebook Project By Outlining This Chapter. Then Outline A Long IB Exam Answer Using A Spider Map.

    • New Textbook Chapter 3.3 = 8 Headings

    • Can You Listen To Music? Yes, But Only If You Follow All The Rules.

    • Review The Instructioons For These Two Assignments

    • LOOK: A Visual Guide For How To Create Your Outline. There Are Also Samples Posted In The Notebook Section Above. Great Attention To Detail = 100%

    • How To Draw A Spider Map

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

    • LOOK: This Is What A Great Spider Map Looks Like. Use This Sample As Your Model.
  • 4

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

    • No Music On RB Days. Plug In Your Ear Buds. Place Them In Your Ears & Use Them To Listen & Learn From The Video Lessons.

    • What is the Resource Bank?

    • Review The Instructions For This RB Assignment.

    • Take Good Notes - These Posts Contain The Content You Want To Write On The IB Exams

    • LOOK: This Is What A Great RB Page Looks Like. Use This Sample As Your Model.

    • Important Detail: Remember To Highlight The RB Section Titles & Number All Posts Consecutively

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

    • What You Should be Able to Do By the End of this Chapter
  • 5

    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?
  • 6

    Production Costs: FIXED COSTS

    • Video: What Is A Fixed Cost?
  • 7

    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
  • 8

    Production Costs: SEMI-VARIABLE COSTS

    • Video: Definition Of Semi-Variable Costs
  • 9

    Production Costs: DIRECT VERSUS INDIRECT COSTS

    • Video: A Comparison Of Direct & Indirect Costs (Overhead) In A Cake Business
  • 10

    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
  • 11

    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

  • 12

    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
  • 13

    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)?
  • 14

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

    • Review The Instructions For The CCES Assignment.

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

    • Your CCES Assignment Begins At The Top Of A New NB Page: Title= CCES, Then Write 4 CCES Impact Statements For This Chapter Following The Model.

    • LOOK: This Is What A Great CCES Page Looks Like
  • 15

    Case Studies Assignment: This Is Your Practice For The Senior May IB Exams.

    • This Was The Real May 2024 IB BM Standard Level (SL) Paper 2 Exam. Get A Feel For It Now. Know That We Are Preparing For It Every Day In Class & For Homework So You Will Have The Best Chance Of Earning Your Best Score.

    • This Was The Real May 2024 IB BM Higher Level (HL) Paper 2 Exam. Get A Feel For It Now. Know That We Are Preparing For It Every Day In Class & For Homework So You Will Have The Best Chance Of Earning Your Best Score.

    • Exam Tip: Paper 2 Section B (2024-2028)

    • Step-By-Step Instructions For Doing Your Case Studies As Practice For Your Senior May Exams

    • LOOK: This Is What A Completed & Corrected Case Study Analysis Looks Like. Use This Sample As Your Model.

    • See How The IB BM Command Terms Are Organized

    • What Are Command Terms & Why Are They Important?

    • Old Command Terms List = Rules for Answering Test Questions

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

    • Chapter 3.8 Has 4 Case Studies. Choose & Complete At Least 3.

    • Finished Early? Don't Pack Up! Do This ...
  • 16

    Review Day Activities + Presentation Day

    • Read & Follow These Review Day Instructions

    • Watch: 3.3 Chapter Review With Mr. L

    • Video: Mr. B's 3.3 Review

    • EXAM TIP!

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

    • LOOK: This Is What A Great Chapter Review Page Looks. Use This As Your Model.

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

    • Presentation Day Instructions

    • 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
  • 17

    May Exam Practice Exercises: Do These Practice Questions After Finishing This Chapter's Review Tasks On The Worksheets (Don't Look At The Markscheme Until You Have Written A Complete Answer)

    • You Need Your New Blank IB BM Composition Notebook In Class On Review Day Until The End Of April

    • This Is The Formula Sheet You Will Be Given During The May Exams (Ask Your Teacher For A Copy)

    • Exam Practice: 10 Marks For Total Costs (Careful Not To Scroll Down & See The Answers Before Writing Your Own). Include The Background Info In Your Answer Set- No Separate Section

    • Exam Practice: Revenue Streams (Don't Look At Answers Before Writting Your Own). Include The Background Info In Your Answer Set- No Separate Section

    • Make A Physical Partition Between Each Chapter's IB BM Exam Work
  • 18

    3.3 Quiz Day: Write Your Score In Your Notebook At The Top Of The Shark Tank Page In Red Ink.

    • Quiz Day Schedule Of Activities

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

    • ATTENTION: THE NEXT CHAPTER WILL BE 5.5 BREAK-EVEN!

    • You Must Be Enrolled In The Shark Tank Course

    • After The Quiz, Do The Assigned "Beyond The Tank" Work. If You Have An Excused Absence For Today, You Are Also Excused From This Assignment (Write "ABSENT" With The Date On The Notebook Page)

    • Blue Sheet Instructions. Pick Up A Blue Checklist & Reflection Handout To Complete & Staple Into Your Notebook

    • Due Today On Quiz Day (Before Midnight) Is Your Completed Chapter Notebook Project