In a Defined-Benefit Plan, the Process of Funding Refers to

question 3

Multiple Choice

In a defined-benefit plan, the process of funding refers to

• A) Determining the projected benefit obligation.
• B) Determining the amount that might be reported for pension expense.
• C) Determining the accumulated benefit obligation.
• D) Making the periodic contributions to a funding agency to ensure that funds are available to meet retirees' claims.

---

Definitions:

Collective Decision Making

The process in which a group, rather than an individual, makes a choice or judgment after considering various alternatives.

Economic Questions

Fundamental queries regarding how societies allocate scarce resources to produce goods and services for consumption, including what, how, and for whom to produce.

Allocation of Resources

The process of distributing available resources among various competing needs or uses to achieve desired objectives.

Political Decision Making

The process by which governments and political groups determine policies, allocate resources, and make crucial societal choices.