(a) ‘The analysis of total cost into its behavioural elements is essential for effective cost and management accounting.’
Required:
Comment on the statement above, illustrating your answer with examples of cost behaviour patterns.

(b) The total costs incurred at various output levels, for a process operation in a factory, have been measured as follows:

Required:
Using the high–low method, analyze the costs of the process operation into fixed and variable components.

(c) Calculate, and comment upon, the break-even output level of the process operation in (b) above, based upon the fixed and variable costs identified and assuming a selling price of £10.60 per unit.

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Output (units) 11 500 Total cost () 102 476 12 000 104 730 12 500 106 263 13000 108 021 13 500 110 727 14 000 113 201