Title: Cost Behaviour Patterns
Course: BAC300: Management Accounting I (PEBL) > Section: LESSON THREE: Cost Behaviour Patterns

1.1  Introduction

In this first lesson, we lay the foundation for the entire course by defining the concept entrepreneurship and other related terms. Throughout our teaching experiences, we have found that an understanding of the basic principles behind the subject and their applications increases the students’ motivation for the subject. We therefore introduce you to the theories upon which entrepreneurship study is based and encourage you to engage in in-depth discussions of these concepts and theories. Since the term entrepreneurship is closely associated with small businesses, we introduce the concept of small business too. The purpose of this lesson is to enable you understand fundamental concepts and theories of entrepreneurship.

3.1 Introduction

Lesson-level overview | Lesson/week/section | 3
Lesson name: | Cost Behaviour Patterns
Aim of the lesson: | To explain the various cost behaviour patterns including: fixed costs, variable costs, Semi-fixed costs mixed costs and total costs.
This lesson covers:
1. Types of costs
2. Cost behaviour patterns: fixed, variable cost, mixed cost and total cost
3. Calculations of costs
Intended learning outcomes:
At the end of this lesson, you will be able to:

1. Outline the various types of costs
2. Explain the types of cost behavior patterns.
3. Calculate fixed, variable and mixed cost

Overview of student activity:
1.Pre-lesson activity - brainstorming session on various types of costs and posting answers on discussion forum 3.1 and comparing answers during face to face class

2. Engaging in e-tivities  3.2, 3.3 that involves  reading linked resources and watching videos on types of behavior patterns

3. Calculating fixed, variable and mixed cost

4. Answering questions and collaborating with peers in the discussion forums

Constructive alignment of Lesson level outcomes with module level outcomes, learning activities and assessment

(Pressing <Tab> at the end of the table will provide additional rows in the table, if required.)
Intended Lesson learning outcomes: | No of module-level outcome | Activity where students engage with this outcome | Where and how is this outcome assessed?
At the end of this lesson, you will be able to:
1. Outline the various types of costs | 2 | 3.1 | 3.1 (a) - Short answer question
1. Explain the types of cost behavior patterns. | 2 | 3.2 | 3.2 (a) - Essay
1. Calculate fixed, variable and mixed cost | 2 | 3.3 | 3.3 (a) and (b)-Computation questions

Detailed explanation of ALL student and teacher engagement with the Lesson:

Detailed explanation of ALL student and teacher engagement with the Lesson:

(This should be presented in the order that the activities take place.  So if students do work online before coming to the lecture, that should be shown ahead of what happens in class.

If there is more than one opportunity for face-to-face contact, or more than one online task, there should be a separate section for each instance, and they should be presented in the template in the same order that students encounter them.)

Content – such as lecture material – can EITHER be shown here OR added as clearly identifiable addenda to the document.  If you plan to use addenda, you should ensure that these are cross-referenced in this section.)
Module-level outcomes addressed:
Lesson three addresses module learning outcome 2, accounting information and financial reports.
Purpose of the lesson/week/section:
This lesson will help you to explore various cost behaviour patterns and calculate fixed, variables, stepwise and mixed cost. You will then apply the knowledge in real life situations.
Over to you: (a description of the process of the section)
You will start with a brainstorming session where you will write on various types of costs on discussion forum 3.1 and then compare answers during face to face class.  You will then engage in e-tivity 3.2 where you will explain the types of cost behavior patterns and finally calculate fixed, variable and mixed costs in 3.3.
Pre-lesson activity: | Number of hours | 1
In groups of three, brainstorm on various types of costs. Post your answers in discussion forum 3.1.  Later, you will compare your answers with those of the facilitator.
Face to face time: (if applicable) | Number of hours | 1
Discuss with the learners the various types of costs and their relevance to real life situations.
Online activity: | Number of hours | 1
What should students do? | E-tivity 3.1 Go through the various types of costs then using your own words; (a) Outline the various types of costs
Where do they do it? | In the portfolio
By when should they do it? | Before the next lesson.
E-moderator/tutor role
1. Ensure that learners are focused on the contents and context of discussion.
2. Stimulate further learning and generation of new ideas.
3. Provide feedback on e-tivity 3.1 task.
4. Close e-tivity.
How are the learning outcomes in this lesson assessed? | Number of hours | 1
Short answer questions
How does this section link to other sections of the module?
This is the third lesson which introduces cost, a key element in management accounting decisions and forms the basis for further interactions.

E-tivity 3.2

= Total number of hours | 4 |
Online activity: | Number of hours | 1
What should students do?
E-tivity 3.2

You have already gone through the various types of costs. Read the e-book and watch  video1, and video2, on cost behavior patterns to enable you :

a) Explain the cost behavior patterns

b) Post your explanation on the discussion forum, read what at least two of the colleagues in the tutorial group have posted.  Add to your notes the different cost behaviour patterns you had left out and then repost in the forum.
Where do they do it? | On the discussion forum 3.2
By when should they do it? | Before the next lesson.
E-moderator/tutor role
1. Ensure that learners are focused on the contents and context of discussion.
2. Stimulate further learning and generation of new ideas.
3. Provide feedback on e-tivity 3. 2 tasks.
4. Close the e-tivity.
How are the learning outcomes in this lesson assessed? | Number of hours | 1
Essay questions
How does this section link to other sections of the module?
This third lesson introduced cost behaviour patterns which is a key element in management accounting decisions and forms the basis for the decision-making process.

E-tivity 3.3

Online activity: | Number of hours | 1
What should students do?
E-tivity 3.3

Learn about approaches used in calculations  of various costs on pp. 83-109, and then apply the acquired information to carry out the following exercises:

(a) A manufacturer incurs sh. 3 per Lesson when production output is 10,000 units and sh. 2.50 when output is at 20,000 units. Calculate the total fixed cost.

(b) A firm produces and sells single product. The fixed cost of production in a month is sh.50, 000 and variable cost per unit is sh.20. If 3,000 units are produced in a month. Calculate: (i) total variable cost (ii) total cost of production.

(c) Post your answers on the discussion forum, share the answers with your colleagues in the tutorial groups to verify your answers and make notes to your answer if necessary.
Where do they do it? | On the discussion forum 3.3
By when should they do it? | Before the next lesson.
E-moderator/tutor role
1. Ensure that learners are focused on the contents and context of discussion.
2. Stimulate further learning and generation of new ideas.
3. Provide feedback on e-tivity 3. 3 tasks.
4. Close the e-tivity.
How are the learning outcomes in this lesson assessed? | Number of hours | 1
Computation questions
How does this section link to other sections of the module?
It lays foundation for the succeeding lessons in which the cost behaviour will be discussed further.

Some important questions

Which learning resources/ references will scaffold the students’ learning?
1. MitchelL, F., Moyne, C. Patty, G. & Dixon, C. (2019) Principles of accounting, Vol 2:managerial accounting, OpenStax , Houston, Texas
2. Kurt, H., Sierra, C. Joe, & H. (2012) Managerial accounting, Saylor Foundation.
3. YouTube video https://www.youtube.com/watch?v=cDsaQtc0n3E .  (2017). Retrieved 1 June 2021.
4. YouTube video https://www.youtube.com/watch?v=5HhZIS2vr6k. (2018). Retrieved 15 May 2021.
How are students enabled to access the resources? | Learning Management System (LMS). OER Africa website
Where in this lesson are students expected to work collaboratively? | Discussion forum 3.1, 3.2 and 3.3
How has an inclusive approach been incorporated in this lesson?
1. Use of multimedia resources in the module and differentiated learning activities.
2. Use university computer labs, all resources are downloadable for offline use and discounted data bundles are available to students.
3. Use of accessibility button for learners with special needs on the LMS.
How will feedback on lesson be obtained from students? | Through the posts in the discussion forum 3.1, 3.2 and 3.3
How will student feedback be used to improve lesson? | By incorporating suggestions in the course for the current and subsequent cohorts.
At which point(s) will students receive formative feedback on the work they have done in the lesson? | Before the next lesson.