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:

Advantage

A condition or circumstance that puts one in a favorable or superior position, often used in the context of competitive situations.

Sequential Games

Games or strategic situations where players make decisions one after another, with each player aware of the previous players' moves before making their own decisions.

First-mover Advantages

The competitive edge that a company gains by being the first to market with a new product or service.

Repeated Games

In game theory, repeated games are those where the same game (with the same payoffs to strategies) is played more than once, allowing for strategy development over time based on past outcomes.