The Increase in the Projected Benefit Obligation from One Additional

question 82

Multiple Choice

The increase in the projected benefit obligation from one additional year of service from employees is referred to as ________.

• A) employer contribution
• B) service cost
• C) expected return on plan assets
• D) prior service cost

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Definitions:

Administrative Expenses

Costs related to the general operation of a business, such as salaries of non-sales personnel, rent, office supplies, and utilities.

Variable Cost Method

A cost-plus method of pricing setting in which only the variable costs are included in the cost amount to which the markup is added.

Fixed Manufacturing Costs

Expenses that do not change with the level of production, such as rent, salaries of permanent employees, and depreciation of factory equipment.

Markup

The extra charge added to the purchasing cost of items to encompass both overhead expenses and profit, setting the sale price.