When an Employer Makes All of the Contributions to the Pension

question 32

Multiple Choice

When an employer makes all of the contributions to the pension plan, the pension plan is classified as ________.

• A)qualified
• B)non-qualified
• C)defined contribution
• D)non-contributory

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Definitions:

Unit Product Cost

The total cost (fixed and variable) associated with making one unit of product.

Fixed Manufacturing Overhead

Costs associated with the production process that do not vary with the level of output, such as salaries of managers or rent of the factory building.

Inventories

Materials, work in progress (WIP), and finished goods held by a company to enable production and meet customer demand.

Deferred

Deferred refers to something that is postponed or delayed to a later time, often used in the context of accounting to describe expenses or income.