Which Statement Is Correct

question 17

Multiple Choice

Which statement is correct?

• A)An unexpected gain on plan assets represents an unfavourable difference between actual and expected amounts of income from pension assets.
• B)Actuarial gains and losses arising from the obligations of a pension plan derive from differences between the actual and expected values of the obligation.
• C)IFRS requires actuarial gains and losses to be recorded the income statement.
• D)An unexpected loss on plan assets represents a favourable difference between actual and expected amounts of income from pension assets.

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Definitions:

Implicit Costs

The opportunity costs of using resources owned by the business for its operations instead of allocating them to their best alternative use.

Interest Rate

The expense associated with taking out a loan or the earnings from investments, usually shown as a percent of the total amount invested or borrowed.

Specialization

The process of focusing effort and resources on a limited number of activities to gain efficiency or expertise.

Average Cost

The total cost of production divided by the total quantity produced, representing the cost per unit of output.