Entity a Contributes to a Defined Benefit Superannuation Plan for Its

question 22

Multiple Choice

Entity A contributes to a defined benefit superannuation plan for its employees.It calculates the following: Current service cost 12,785
Interest cost 983
Expected return on plan assets (1,150)
Net actuarial gain recognised in period (1,835)
10,783
The 'Expected return on plan assets (1,150) ' represents:

• A) The expected return at the start of the period, measured as a proportion of the current service cost.
• B) The expected return at the start of the period, measured as a proportion of the opening fair value of the plan obligation.
• C) The adjusted return for the period, measured as a proportion of the closing fair value of the plan assets.
• D) The adjusted return for the period, measured as a proportion of the opening fair value of the plan assets.
• E) The expected return at the start of the period, measured as a proportion of the opening fair value of the plan assets.

Understand the conditions under which a monopolist should continue or cease production in the short run.

Identify and explain barriers to entry in a monopolistic industry.

Recognize the role of patents in establishing and maintaining monopoly power.

Apply the marginal cost equals marginal revenue principle to advise monopolists on production decisions.

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Definitions:

Marginal Rate

The marginal rate often refers to the incremental or additional rate of change in a quantity or cost in response to a change in some other variable.

Social Security System

A government program that provides financial assistance to retirees, disabled workers, and survivors of deceased workers.

Tax Bracket

A range of incomes taxed at a given rate.

Average Tax Rate

The ratio of the total amount of taxes paid to the total taxable income, showing the share of income that goes to taxes.