Which of the Following Statements Is True Regarding an Original

question 57

Multiple Choice

Which of the following statements is true regarding an original equipment manufacturer (OEM) ?

• A)OEMs sell a product on a stand alone basis to end customers.
• B)Brand name is highly visible in OEM marketing.
• C)A customer is usually not aware of the cost structure of an OEM.
• D)Knowledge of technical aspects of the product is important for OEM marketing.

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Definitions:

Defined Benefit Plans

A type of pension plan where the benefits that an employee will receive on retirement are calculated based on factors such as salary history and length of employment.

Defined Contribution Plan

A type of retirement plan where the amount of the employer's annual contribution is specified, with the final benefits received by the employee depending on the investment's performance.

Ultimate Pension Payments

The total amount of pension payments that will be made to an employee under a defined benefit pension plan over the course of their retirement.

Service Cost

The actuarial present value of benefits earned by employees in the current period under a defined benefit plan, included in pension expense.