QUESTION 2

Which statement is FALSE in regards to the treatment of direct material costs under an activity-based costing system?

		Direct material costs are handled in the same manner under both an ABC system and a traditional cost system.
		Direct material costs are not included in the product cost under an ABC system.
		Direct material costs go directly into the cost of the product under an ABC system.
		Direct material costs are treated as a product cost under an ABC system.