Rotonga Manufacturing Company leases a vehicle to deliver its finished products to customers. Which of the following terms correctly describes the monthly lease payments made on the delivery vehicle?
A.
| Direct Cost | Fixed Cost |
| Yes | Yes |
B.
| Direct Cost | Fixed Cost |
| Yes | No |
C.
| Direct Cost | Fixed Cost |
| No | No |
D.
| Direct Cost | Fixed Cost |
| No | Yes |
Answer: D
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