Which of the Following Statements Regarding Postretirement Benefits Other Than

question 11

Multiple Choice

Which of the following statements regarding postretirement benefits other than pensions is true?

• A)A liability for postretirement benefits other than pensions is not required to be reported on the balance sheet.
• B)The interest component of the net postretirement benefit expense is based on the accumulated postretirement benefit obligation (APBO).
• C)The interest component of the net postretirement benefit expense is based on the expected postretirement benefit obligation (EPBO).
• D)An intangible asset for other postemployment benefits (OPEB)is required to be reported on a company's balance sheet.

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Definitions:

Variable Cost Method

An accounting approach where costs that vary directly with the level of production are allocated to products, influencing the cost of goods sold and inventory valuation.

Contribution Margin

The difference between the sales revenue of a product and its variable costs, indicating the amount contributing towards covering fixed costs and generating profit.

Standby Passenger

Standby Passenger refers to a traveler who does not have a confirmed reservation for a flight and waits for an available seat to become free due to cancellations or no-shows.

Contribution Margin

Contribution margin is a financial metric that represents the amount of revenue from sales that exceeds variable costs, indicating the portion of sales revenue that contributes to covering fixed costs and generating profit.