If a Pension Plan Is Overfunded, It Means That the ________

question 9

Multiple Choice

If a pension plan is overfunded, it means that the ________.

• A) ABO exceeds plan assets
• B) PBO is less than plan assets
• C) ABO is less than plan assets
• D) PBO exceeds plan assets

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Definitions:

Standard Deviation

A numerical indicator that reflects the degree of spread or variation of data points in a dataset from the average value.

Safety Inventory

Extra stock kept on hand to protect against stockouts caused by variability in demand or supply.

Safety Inventory

A stock buffer maintained to mitigate risk of stockouts due to demand variability and supply chain uncertainties.

Lead Time

The duration between the initiation and completion of a process, such as the time from placing an order to its delivery.