Willshire Ltd

question 19

Multiple Choice

Willshire Ltd.is evaluating amendments to its pensions plans.Plan 1 covers its salaried employees and Plan 2 provides benefits to its hourly workers.On January 1, 2012, Willshire will grant employees in Plan 2 additional pension benefits of £240,000 based on their past service.Employees in this plan have an average period to vesting of 8 years.Plan 1 will be amended to reduce benefits by £120,000 (in exchange, employees will receive increased contributions to the company's defined contribution plan) .Employees in this plan have an average period to vesting of 6 years.What is the total unrecognized past service cost amortization for 2012?

• A)€50,000
• B)€60,000
• C)€25,714
• D)€10,000

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Definitions:

Competitive Activity

Actions taken by companies to gain an advantage or achieve superior performance relative to their competitors.

Interdependency

A mutual reliance between two or more entities where each depends on the others for success, resources, or support.

Strategic Planning

The process of defining an organization's strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people.

Marketing Structure

The framework within which marketing activities and functions are organized, including the distribution channels, market segmentation, and strategies used to reach target customers.