The Accounting for Defined Contribution Pension Plans Is Easy Because

question 235

Multiple Choice

The accounting for defined contribution pension plans is easy because each year:

• A) The employer records pension expense equal to the amount paid out to retirees.
• B) The employer records pension expense based on an amount provided by the actuary.
• C) The employer records pension expense equal to the annual contribution.
• D) The employer records pension expense based on the earnings of the plan assets.

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Definitions:

Open-system Perspective

An open-system perspective views organizations as entities that interact with their external environments, exchanging resources, and being influenced by external factors.

Multivariate Decision

A decision-making process that involves considering multiple variables or factors simultaneously to reach a conclusion or solution.

Contingency Approach

A management theory that suggests the most appropriate form of decision making, leadership, or organization is dependent on the specific variables of the situation.

Production-oriented Management

This approach to management prioritizes the efficiency of the production process and output over other factors, focusing on high production rates and cost minimization.