In Pension Accounting, the Actuary's Main Purpose Is to

question 20

Multiple Choice

In pension accounting, the actuary's main purpose is to

• A) make predictions about mortality rates and employee turnover.
• B) calculate the current pension cost.
• C) calculate the interest cost of the pension plan.
• D) ensure the employer has established an appropriate funding pattern to meet its pension obligations.

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Definitions:

Sherman's Neckties

A term referring to the practice by Union General William Tecumseh Sherman during the American Civil War of destroying Confederate railroad tracks by heating and then bending them.

Railroad Ties

Heavy beams used as a base for railroad tracks to hold them in place and ensure the tracks remain aligned.

North's Economy

The economic system of the northern United States, historically characterized by industrial manufacturing, as opposed to the agrarian economy of the South.

Standardization of Production

The process of implementing and developing technical standards to maximize productivity, efficiency, and quality.