This is an interactive exercise that describes average cost and the break-even point. Students are able to manipulate inputs to determine the difference between marginal cost and average cost. They also examine how different inputs affect the break-even point. This can be used in a variety of business courses in which average cost and break-even points are discussed.
Type of Material:
Drill and Practice
Recommended Uses:
In-class lecture or group work
Homework
Individual drill and practice
Technical Requirements:
Used Edge.
Java-enabled browser to activate the Applet in the drill. Some familiarity with the cost concepts to which this drill practice refers
Identify Major Learning Goals:
After viewing this tutorial, students should be able to:
discusses average cost, and
gives some typical uses of the average cost concept, and
shows the distinction between average cost and marginal cost.
Target Student Population:
Undergraduates in finance courses.
Undergrads in marketing courses.
Undergrads in accounting courses.
Prerequisite Knowledge or Skills:
College level mathematical skills
Content Quality
Rating:
Strengths:
The drill is very well-written with clear instructions for each step.
The drill is based on a hypothetical toy business and a home-care business that references actual barriers to entry faced in this industry.
There are a number of examples that build on each other.
Concerns:
The author seems to be defining breakeven as the lowest output at which the business makes a profit. The more conventional use of the term is when total revenue is equal to total economic cost or when price is equal to average total cost.
My concern is about the difference between the way the author defines breakeven and the way that is defined in many other reference sources.
Potential Effectiveness as a Teaching Tool
Rating:
Strengths:
This drill exercise progressively leads the student through the calculation of marginal cost and average total cost
It uses simple tables and feedback if there is an incorrect answer.
The material is very informative and well explained.
There are also tutorials to assist students along the way.
Concerns:
The approach used in this drill is rather dated now that cost concepts are presently taught with interactive digital learning and adaptive learning techniques.
Nevertheless, the exercises provided in this drill are useful as a low--technology, low-cost way for students to learn the concepts.
Ease of Use for Both Students and Faculty
Rating:
Strengths:
The material is very easy to access and utilize.
All of the information is on one page
It is interactive
Answers are provided
Concerns:
The drill needs a Java-enabled browser for the students to have full functionality of the exercise. Java is not supported as it used to be when this material was developed.
Although the exercise is interactive in the sense that feedback is given to the student’s responses, the presentation is not very visually appealing.
The drill methodically leads students through the material but, beyond the feedback provided, does not engage the student in any other way.
The design quality is adequate but very basic.
Other Issues and Comments:
The need to use Java Applets and a Java-enabled browser dates this learning material.
Creative Commons:
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