How does referencing aid in the management of document size?

Referencing aids in the management of document size primarily by linking documents and avoiding duplication. In MongoDB, when you use referencing, you store related data in separate documents and use references like ObjectIDs to create relationships between them. This approach allows you to keep individual documents smaller because you are not embedding large amounts of related data directly inside each document.

This strategy becomes essential in scenarios where documents might contain significant amounts of data, as it prevents the issues that arise when documents grow too large. By linking documents that are referenced, you maintain a more efficient and manageable structure in your database and reduce redundancy, thus optimizing storage and performance.

The other options do not accurately represent the benefits of referencing: larger embedded documents aren't facilitated through referencing, and multiple collections are indeed separate when using references. Some might think that requiring all related data to reside in a single document is beneficial for simplicity, but this can lead to the challenges of managing document size and complexity.