A Cost Center Incurs Costs and Generates Revenues and Cost

question 8

True/False

A cost center incurs costs and generates revenues and cost center managers are evaluated on the profitability of their centers.

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Definitions:

Net Periodic Pension Expense

The total cost recognized in a particular period related to pension plans, reflecting service cost, interest cost, expected return on plan assets, and other factors.

Unrecognized Past Service Cost

Costs associated with pension plan benefits earned by employees in prior periods not yet reflected in financial statements.

Periodic Pension Expense

The total expense recognized in a period related to an organization’s pension plan.

Funded Status

The financial condition of a pension or other post-employment benefit plan, calculated as the difference between plan assets and obligations.