Whenever a Defined-Benefit Plan Is Amended and Credit Is Given

question 53

Multiple Choice

Whenever a defined-benefit plan is amended and credit is given to employees for years of service provided before the date of amendment

• A) both the accumulated benefit obligation and the projected benefit obligation are usually greater than before.
• B) both the accumulated benefit obligation and the projected benefit obligation are usually less than before.
• C) the expense and the liability should be recognized at the time of the plan change.
• D) the expense should be recognized immediately, but the liability may be deferred until a reasonable basis for its determination has been identified.

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Definitions:

Factory Superintendent's Salary

A component of manufacturing overhead costs, representing the compensation paid to the individual overseeing factory operations.

Absorption Costing

The reporting of the costs of manufactured products, normally direct materials, direct labor, and factory overhead, as product costs.

Factory Superintendent's Salary

An operational cost, this is the compensation paid to the individual responsible for overseeing the production in a manufacturing plant.

Property Taxes

Levies imposed by a government on real estate or other property, based on the property's value.