The Expense Recognised by an Employer for a Defined Benefit

question 51

Multiple Choice

The expense recognised by an employer for a defined benefit superannuation plan:

• A) will always equal the amount of the contribution for the period.
• B) is not necessarily the amount of the contribution for the period.
• C) will never equal the amount of the contribution for the period.
• D) is always greater than the amount of the contribution for the period.

---

Definitions:

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean, indicating how spread out the data points are.

Coefficient of Correlation

A statistical measure that calculates the strength and direction of a linear relationship between two variables.

Slope

The rate of change in the variable on the y-axis per unit change in the variable on the x-axis in a coordinate system; it quantifies the steepness of a line.

Least Squares Line

A linear equation that minimizes the sum of the squares of the differences between observed and predicted values.