What Are Past Service Costs in a Defined Benefit Plan

question 2

Multiple Choice

What are past service costs in a defined benefit plan?

• A)Plan amendments that retrospectively improve pension plan benefits.
• B)Difference arising between the actual and the expected value of plan assets.
• C)Expected interest,dividend or income earned on the pension plan assets.
• D)Differences arising between the actual and expected values of the pension obligations.

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Definitions:

DSM Advantages

Refers to the benefits of using the Diagnostic and Statistical Manual of Mental Disorders, such as providing a common language for diagnosing and classifying mental disorders.

Validity

The extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.

Reliability

The degree to which an assessment tool produces stable and consistent results.

Test Construction

The process of developing a test that accurately measures what it is intended to measure, including the creation of test items and validation of the test.