Which of the Following Is Not True About Post-Retirement Benefits

question 18

Multiple Choice

Which of the following is not true about post-retirement benefits?

• A)Post-retirement costs should be recognized as expense as the workers earn the right to receive the benefits.
• B)Most corporations have fully funded their post-retirement benefits.
• C)Unfunded post-retirement costs are a non-cash expense.
• D)A corporation's liability for post-retirement benefits is equal to the present value of estimated future payments.

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Definitions:

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A method used in accounting to evaluate and break down the detailed costs of an account into its various components.

High-Low Method

A technique used to estimate variable and fixed components of a cost by analyzing the highest and lowest activity levels.

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A statistical method used to determine the line of best fit by minimizing the sum of the squares of the differences between observed values and those predicted by the line.

Scattergraph

A graphical representation that plots individual data points, often used to identify trends or correlations in data analysis.