Question: Ballard Company is implementing an activity-based costing (ABC) system. Under such a system, how are facility support costs treated? As common costs that are not

Ballard Company is implementing an activity-based costing (ABC) system. Under such a system, how are facility support costs treated?

  • As common costs that are not assigned to any specific product
  • As advertising costs that are excluded from the computation of gross operating profit
  • As direct labor costs that are assigned to specific products
  • As direct materials costs that are assigned to specific products

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