What is the typical effect on the numbers of cost pools and cost assignment bases when an activity-based costing (ABC) system replaces a traditional costing system? (CPA adapted)
$\begin{array} {cc }
& { \text { Cost Pools } } & { \text { Cost Assignment Bases } } \\end{array}$
A.$\begin{array} {cc } & \text { No effect } &&&& \text { No effect } \\end{array}$
B.$\begin{array} {cc } & \text { Increase } &&&& \text { No effect } \\end{array}$
C.$\begin{array} {cc } & \text { No effect } &&&& \text { Increase } \\end{array}$
D.$\begin{array} {cc } & \text { Increase } &&&& \text { Increase } \
\end{array}$
A) Option A
B) Option B
C) Option C
D) Option D

Question

What is the typical effect on the numbers of cost pools and cost assignment bases when an activity-based costing (ABC) system replaces a traditional costing system? (CPA adapted)
$\begin{array} {cc } 
&  { \text { Cost Pools } } & { \text { Cost Assignment Bases } } \\end{array}$
A.$\begin{array} {cc } & \text { No effect } &&&& \text { No effect } \\end{array}$
B.$\begin{array} {cc }  & \text { Increase } &&&& \text { No effect } \\end{array}$
C.$\begin{array} {cc }  & \text { No effect } &&&& \text { Increase } \\end{array}$
D.$\begin{array} {cc } & \text { Increase } &&&& \text { Increase } \
\end{array}$
A) Option A
B) Option B
C) Option C
D) Option D

Quizplus · Accepted Answer

An activity-based costing (ABC) system typically increases both the number of cost pools and cost assignment bases compared to a traditional costing system, as it allocates costs more precisely by identifying multiple activities and their respective cost drivers.

What Is the Typical Effect on the Numbers of Cost Cost Pools Cost Assignment Bases \begin{array} {cc } & { \text { Cost Pools } } & { \text { Cost Assignment Bases } } \\\end{array}​ Cost Pools ​ Cost Assignment Bases ​

What Is the Typical Effect on the Numbers of Cost $\begin{array} {cc } & { \text { Cost Pools } } & { \text { Cost Assignment Bases } } \\\end{array}$