Which of the Following Is Not a Step in Accounting

question 19

Multiple Choice

Which of the following is not a step in accounting for contributions to a defined benefit superannuation plan?

• A) Determine the fair value of any plan.
• B) Discount any benefit employees have earned.
• C) Estimate the amount of benefits the employees have earned in return for their service in the current and prior periods.
• D) Establish the numbers of years until retirement for each employee to accurately calculate their likely benefit.
• E) Determine the total amount of actuarial gains and losses.

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Definitions:

Constant Gross Margin Method

A pricing strategy where the gross margin percentage is kept constant despite variations in product costs.

Joint Cost Allocation

The process of assigning the cost of a production process that yields multiple products proportionally to those products.

Activity-Based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption.

Volume-Based Costing

A costing methodology that assigns costs based primarily on the volume of goods or services produced, such as in traditional absorption costing systems.