With Pensions, Service Cost Reflects Additional Benefits Employees Earn from an Additional

question 104

Multiple Choice

With pensions, service cost reflects additional benefits employees earn from an additional year's service. The service cost for retiree health care plans is:

• A) An allocation to the current year of a portion of an estimated fixed total cost.
• B) An allocation to the current year of a portion of an existing liability.
• C) An amount earned by a defined benefit formula.
• D) The amount paid to retired employees.

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Definitions:

Correlation Coefficients

Statistical measures that describe the extent to which two variables change together, indicating the strength and direction of their relationship.

Weakest Degree

The minimum intensity or level at which a particular phenomenon or condition exists or is perceptible.

Random Sample

a sample that fairly represents a population because each member has an equal chance ofinclusion.

Representative of the Population

A sample group or individual characteristics that accurately reflect the larger population from which they're drawn.