Which of the Following Is Not a Requirement for a Qualified

question 199

Multiple Choice

Which of the following is not a requirement for a qualified pension plan?

• A) It cannot discriminate in favor of highly paid employees.
• B) It must cover at least 80% of the employees.
• C) It must be funded in advance of retirement.
• D) Benefits must vest after a specified period of service, commonly five years.

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Definitions:

Standard Cost Accounting System

A cost accounting system that assigns preset costs to products or services, used for budgeting and controlling expenses.

Ideal Standards

Benchmark levels of performance set under perfect operating conditions, used for budgeting and measuring efficiency.

Materials Price Variance

The difference between the actual cost of materials and the standard or expected cost.

Standard Costs

Predetermined costing used in budgeting and decision-making, representing an expected cost under normal conditions.