A Cost Hierarchy Is a Categorization of Costs into Different

question 156

True/False

A cost hierarchy is a categorization of costs into different cost pools on the basis of different classes of cost drivers or different degrees of difficulty in determining cause-and-effect relationships.

---

Definitions:

Defined Contribution Pension Plan

A retirement savings plan where an employer, employee, or both make contributions on a regular basis, with future benefits fluctuating based on investment performance.

Pension Expense

The cost incurred by an employer in a given period to fund or fulfill its commitment for employee pensions.

Pension Expense

The total cost to a company for the retirement benefits earned by employees in a given period.

Deferred Compensation

A portion of an employee's income that is deferred to a later date, typically to take advantage of lower tax rates or to fund retirement plans.