The PBO Is Increased By

question 197

Multiple Choice

The PBO is increased by:

• A) An increase in the average life expectancy of employees.
• B) Amortization of prior service cost.
• C) An increase in the actuary's assumed discount rate.
• D) A return on plan assets that is lower than expected.

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Definitions:

Fabrication Line

A machine-paced, product-oriented facility for building components.

Process-Oriented Layout

A layout that deals with low-volume, high-variety production in which like machines and equipment are grouped together.

Material Handling Costs

Expenses involved in moving, protecting, storing and controlling materials throughout the manufacturing process.