Which of the Following Statements About Trust Fund Plans Is

question 27

Multiple Choice

Which of the following statements about trust fund plans is (are) true?
I.The trustee typically purchases annuities for retiring employees.
II.The trustee guarantees the adequacy of the fund to pay the promised benefits.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and represent a significant portion of the production cost.

Per-unit Cost

The cost associated with producing or acquiring one unit of a product or service.

Repairs

Repairs involve fixing or restoring equipment, machinery, or property to its proper condition without significantly altering its original condition.

Maintenance Costs

Expenses incurred in keeping an asset in working condition or restoring it to working condition.