Which of the Following Is False Regarding Defined Benefit Pension

question 49

Multiple Choice

Which of the following is false regarding defined benefit pension plans provided to employees by a state or local government?

• A)Defined benefit pension plans are fully funded by the employees of a state or local government.
• B)Pension requirements create a huge financial obligation for many governments across the United States.
• C)Many state and local governments establish pension trust funds to accumulate and invest monetary resources and to pay out pension benefits.
• D)Pension trusts are classified as fiduciary funds.
• E)Pension trusts are not included in reporting government-wide financial statements.

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Definitions:

Expected Cost

An estimate of the cost associated with a project or production, taking into account various factors like labor, materials, and overhead.

Sell

To sell involves the exchange of a product or service for money, constituting a basic economic transaction between a provider and a receiver.

Fixed Maintenance Cost

The portion of total maintenance costs that does not fluctuate with changes in activity level or output.

Machine-Hours

The total hours that a machine is operated over a specific period of time, used in allocating manufacturing costs.