Which One of the Following Assumptions Is Needed to Estimate

question 194

Multiple Choice

Which one of the following assumptions is needed to estimate both postretirement health care benefits and pension benefits?

• A) Per capita claims cost.
• B) Expected cost trend rate.
• C) Benefits provided by other governmental or private plans.
• D) Employee turnover.

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Definitions:

Paying Customer

An individual or entity that exchanges money for goods or services.

Price Management

The strategic process of setting, adapting, and potentially negotiating prices of products or services to achieve financial goals.

Services

Offerings, advantages, or pleasures provided for purchase that are fundamentally non-material and do not lead to acquiring ownership of any item.

Future Services

Anticipated or planned services intended to be introduced or enhanced in the future to meet emerging customer needs.