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Classify the following as fixed or variable costs:
a. Fuel Interest on company-issued bonds
b. Shipping charges
c. Payments for raw materials
d. Real estate taxes
e. Executive salaries
f. Insurance premiums
g. Wage payments
h. Depreciation and obsolescence charges
i. Sales taxes
j. Rental payments on leased office machinery

Respuesta :

cecylya

Answer:

a. Fuel Interest on company-issued bonds  FIXED

b. Shipping charges  VARIABLE

c. Payments for raw materials  VARIABLE

d. Real estate taxes  FIXED

e. Executive salaries  FIXED

f. Insurance premiums  FIXED

g. Wage payments  VARIABLE

h. Depreciation and obsolescence charges  FIXED

i. Sales taxes  VARIABLE

j. Rental payments on leased office machinery FIXED

Explanation:

Fixed costs are the cost of an organization that don´t change with the amount of production.  So ,  if the production is 0,  this cost will exist anyway. For example:  real estate taxes,  rental

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