Costing
Lesson details
Learning outcome
I can explain how a range of factors affect product costing in industry.
Key learning points
- Product costs go beyond materials - they include labour, overhead, and other expenses.
- Costs are influenced by internal factors and external factors.
- Businesses set prices by managing expenses.
Keywords
Economies of scale - as production increases, the cost per unit decreases
Overhead - the ongoing cost of running a business
Automation - use of technology to perform tasks
Common misconception
The cost of a product only concerns raw materials.
Other factors like labour, overhead, distribution, and economies of scale affect the cost of a product.
Teacher tip
This lesson is a good opportunity to introduce maths in D&T questions that are related to costing e.g. percentages. Calculators are permitted.
Equipment
Calculator (optional)
Licence
Lesson video
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Prior knowledge starter quiz
6 Questions
Q1.A design is a statement that outlines the requirements of a product.
Q2.What is the main purpose of market research?
Q3.Which of the following materials would not be suitable for a child’s lunchbox?
Q4.A company sells a product for £30, and the cost to make it is £18. How much profit do they make per unit?
Q5.Which of the following is NOT a cost businesses need to consider?
Q6.Why do businesses set different prices for similar products?
Assessment exit quiz
6 Questions
Q1.A business sets its price by considering the cost of materials, labour, overhead, and ...
Q2.Which of the following is an example of a direct cost?
Q3.Which of the following are linked to external costing factors?
Q4.Put the following steps of product costing in the correct order:
Q5.When a business produces more units of a product, it can lower the cost per unit due to __________.
Q6.How does automation typically affect the costs of producing a product?
To help you plan your 11 design and technology lesson on: Costing, download all teaching resources for free and adapt to suit your pupils' needs...
To help you plan your 11 design and technology lesson on: Costing, download all teaching resources for free and adapt to suit your pupils' needs.
The starter quiz will activate and check your pupils' prior knowledge, with versions available both with and without answers in PDF format.
We use learning cycles to break down learning into key concepts or ideas linked to the learning outcome. Each learning cycle features explanations with checks for understanding and practice tasks with feedback. All of this is found in our slide decks, ready for you to download and edit. The practice tasks are also available as printable worksheets and some lessons have additional materials with extra material you might need for teaching the lesson.
The assessment exit quiz will test your pupils' understanding of the key learning points.
Our video is a tool for planning, showing how other teachers might teach the lesson, offering helpful tips, modelled explanations and inspiration for your own delivery in the classroom. Plus, you can set it as homework or revision for pupils and keep their learning on track by sharing an online pupil version of this lesson.
Explore more key stage 4 design and technology lessons from the Designing and Making Principles unit, dive into the full secondary design and technology curriculum, or learn more about lesson planning.