CIMA Cost Accounting Stage 2 IMB.7 Intermediate: Analysis of costs Into fixed and variable elements and break-even point calculation. (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. (5 marks) (b) The total costs incurred at various output levels, for a process operation in a factory, have been measured as follows: Output (units) Total cost () 11500 12000 12500 13000 102476 104 730 106263 108021 110 727 113 201 13500 14000 Required: Using the high-low method, analyse the costs of the process operation into fixed and variable components. (4 marks) (c) Calculate, and comment on, the break-even output level of the process operation in (b) above, based on the fixed and variable costs identified and assuming a selling price of 10.60 per unit. (5 marks) ACCA Foundation Paper 3