Classify the following as fixed or variable costs:
1. Fuel
2. Interest on company-issued bonds
3. Shipping charges
4. Payments for raw materials
5. Real estate taxes
6. Executive salaries
7. Insurance premiums
8. Wage payments
9. Depreciation and obsolescence charges
10. Sales taxes
11. Rental payments on leased office machinery

Fixed cost: Interest on company-issued bonds, Real estate taxes, Executive salaries,  Insurance premiums,  Wage payments, Depreciation and obsolescence charges, Sales taxes, Rental payments on leased office machinery

Variable cost: Fuel, Shipping charges, Payments for raw materials,

Explanation:

Fixed costs are costs that are not changed regardless of quantity of goods being produced such as rent for equipment, taxes, depreciation and so on.

Variable costs are costs that change with regard to the quantity of goods being produced such as cost of raw materials, cost of packaging and so on.

Example of fixed and  variable costs are:

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.