If a Government Had Two Pension Plans; One a Locally

question 32

True/False

If a government had two pension plans; one a locally administered plan for which it is trustee and one a statewide plan to which it contributes; the government would report only the locally administered plan as a pension trust fund in the basic financial statements.

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Definitions:

Standard Hours

Refers to the set amount of time expected to perform a specific task or produce a specific quantity of goods.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, used in manufacturing cost analysis.

Actual Costs

The real costs incurred in the production of goods or services, as opposed to estimated or forecasted costs.

Standard Costs

Standard costs are predetermined calculations used in cost accounting that represent the expected cost of manufacturing or producing goods under normal conditions.