Which of the Following Statements Regarding Vesting in a Defined

question 10

Multiple Choice

Which of the following statements regarding vesting in a defined benefit plan is correct?

• A)Under a cliff vesting schedule, a portion of an employee's benefits vests each year.
• B)Under a graded vesting schedule, an employee's entire benefit vests all at the same time.
• C)When an employee's benefits vest, she is entitled to participate in the employer's defined benefit plan.
• D)When an employee's benefits vest, she is legally entitled to receive the vested benefits.

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Definitions:

Variable Costing

A costing method that includes only variable manufacturing costs—direct labor, direct materials, and variable manufacturing overhead—in unit product cost.

Net Incomes

The total earnings of a company after all expenses, taxes, and costs have been deducted from total revenue.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both fixed and variable manufacturing overhead) in the cost of a product.

Net Operating Income

The profit generated from a company's core business operations, excluding deductions of interest and taxes.