Defined Benefits (DB)Plans Are Benefit Plans Whose Benefits Are Determined

question 151

Multiple Choice

Defined Benefits (DB) Plans are benefit plans whose benefits are determined by:

• A)a formula based on age and length of service,with the employer assuming responsibility for funding.
• B)amounts contributed by the employer and the employee,the final pension depending on amounts contributed,investment income and economical conditions at retirement.
• C)a formula based on the amount contributed by the employer and employee,as well as the employees age,length of service and economic conditions at retirement.
• D)solely the number of years of service of the employee.
• E)similar to RRSPs where employees can directly manage their pension funds.

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Definitions:

Supervisor Salaries

Payments made to employees who oversee the work of other employees, ensuring that work is performed efficiently and policies are followed.

Indirect Factory Wages

Wages paid to workers who are not directly involved in production, such as maintenance staff and supervisors.

Selling And Administrative

Expenses related to the selling of products and the management of business operations, not directly tied to production.

Supervisor Salaries

The compensation paid to employees who oversee and manage other workers or operations within a company.