Which Statement About "Defined Contribution Plans" Is Correct

question 31

Multiple Choice

Which statement about "defined contribution plans" is correct?

• A)Pension expense equals the contributions made based on the plan formula.
• B)Pension expense equals the present value of the future benefits to be paid to the retiree.
• C)Pension cost cannot be capitalized to the cost of inventory.
• D)Pension cost may not be capitalized to the construction cost of property,plant and equipment.