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

question 66

Multiple Choice

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

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Definitions:

Implicit Attitude

Implicit attitudes are unconscious beliefs or feelings towards people, objects, or concepts, influencing behavior and perception without conscious awareness.

Modest Correlation

A statistical relationship between two variables that is present but not strong, indicating a limited degree of association.

Concerned Citizen

An individual who shows care or worry about issues affecting their community or society at large.

Trustworthiness

The quality or attribute of being reliable, dependable, and deserving of trust.