How Is Interest Cost Calculated for a Defined Benefit Pension

question 95

Multiple Choice

How is interest cost calculated for a defined benefit pension plan?

• A)Multiply the PBO by the discount rate.
• B)Multiply the ABO by the discount rate.
• C)Multiply the PBO by the expected return on the plan assets.
• D)Multiply the ABO by the expected return on the plan assets.

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