Which of the Following Is a Feature of Defined Contribution

question 19

Multiple Choice

Which of the following is a feature of defined contribution plans?

• A)They are faster to vest than defined benefit plans.
• B)They are characterized by high contribution rates.
• C)They are less portable than defined benefit plans.
• D)They are fully funded by employers.

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Definitions:

Fixed Overhead

Expenses that remain constant regardless of how much is produced or sold, including items like lease payments, wages, and insurance premiums.

Direct Labor

The wages or salaries paid to employees who are directly involved in manufacturing a product or providing a service.

Raw Material

Basic materials used in the production process to manufacture finished goods, essential components of production cost.

Cost of Goods Sold

Direct expenditures involved in the manufacture of products a business sells, such as labor and materials.