Question: 1. Describe the following cost behaviours: fixed, variable; mixed. (3 marks) 2. Discuss the relationship between the volume of activity, costs and profit. (4

1. Describe the following cost behaviours: fixed, variable; mixed. (3 marks) 2.

1. Describe the following cost behaviours: fixed, variable; mixed. (3 marks) 2. Discuss the relationship between the volume of activity, costs and profit. (4 marks) 3. List 10 costs associated with Taylor's Swift Cup Cakes. For each cost: a. state if they are fixed, variable or mixed. b. state if they are product or period costs (10 marks) (10 marks) 4. If the cup cakes are distributed in boxes of one dozen, how could a break-even point be calculated? (4 marks) 5. Explain how to determine a margin of safety and its importance in relation to Taylor's Swift Cup Cakes business. (4 marks)

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