When a Pension Plan Is Amended to Recognize Previous Service

question 57

Multiple Choice

When a pension plan is amended to recognize previous service of currently enrolled employees,what component of pension expense is created?

• A)transition costs
• B)amendment costs
• C)past service costs
• D)prior service costs

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Definitions:

Lower Quartile

The value below which 25% of the data falls, marking the lower end of the middle 50% of a dataset.

Median

The middle value in a list of numbers, which separates the higher half from the lower half.

Standard Deviation

A metric that quantifies the degree to which values in a collection vary from the average value of the group.

IQR

The interquartile range, a measure of statistical variability between the 25th and 75th percentiles.