Which Statement About "Defined Contribution Plans" Is Not Correct

question 73

Multiple Choice

Which statement about "defined contribution plans" is not correct?

• A)Pension expense equals the contributions made based on the plan formula.
• B)Pension expense equals the present value of the future benefits to be paid to the retiree.
• C)Pension cost may be capitalized to the cost of inventory.
• D)Pension cost may be capitalized to the construction cost of property,plant and equipment.

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Definitions:

Charismatic Authority

The exercise of power as legitimated through the personal magnetism of individuals who compel people to believe in them and grant them their support.

Traditional Authority

The exercise of power as legitimated by long-established cultural patterns and traditions.

Social Inequality

Varied social roles or statuses within a group or society experience unequal levels of opportunities and rewards.

Hunting and Gathering

Refers to a pre-agricultural system of lifestyle where societies rely on hunting wild animals and gathering wild plants for sustenance.