What Is the Typical Effect on the Numbers of Cost

question 91

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) $$\begin{array} { | l | c | c | } \hline & \text { Cost Pook } & \text { Cost Assignment Bases } \\\hline \text { A. } & \text { No effect } & \text { No effect } \\\hline \text { B. } & \text { Increase } & \text { No effect } \\\hline \text { C. } & \text { No effect } & \text { Increase } \\\hline \text { D. } & \text { Increase } & \text { Increase } \\\hline\end{array}$$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Standard Error

A measure that quantifies the variation or dispersion of a sample mean from the population mean.

Population Proportion

The fraction or percentage of a population that possesses a certain property or characteristic.

Control Chart

A statistical tool used in quality control processes to monitor, control, and ascertain the stability of a process.

Defective Candy Bars

Candy bars that do not meet the production quality standards due to flaws.