What is the normal effect on the numbers of cost pools and allocation bases when an activity-based cost (ABC) system replaces a traditional cost system?
|
Cost pools |
Allocation bases |
|
|
a. |
No effect |
No effect |
|
b. |
Increase |
No effect |
|
c. |
No effect |
Increase |
|
d. |
Increase |
Increase |