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

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

Correct Answer:

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