(7 marks) 1 Maxed costs are defined as b d Costs with a fixed element and a controllable element Costs with a relevant element and a controllable element Costs with a variable element and a fixed element Costs with a variable element and a relevant element 2 A static budgets useful in controlling costs when the cost behaviour is: a Linear b Variable c Fixed d Mixed 2 B 3 Which one of the following describes the breakeven point? a The point where contribution margin equals zero b The point where total sales equals total fixed costs The point where total variable costs equal total fixed costs d The point where total sales equals total costs