Simplifying Assumptions Made When Using Cost Behavior Pattern Data Include

question 51

Multiple Choice

Simplifying assumptions made when using cost behavior pattern data include:

• A) relevant range and liquidity.
• B) fixed activity and linearity.
• C) relevant range and linearity.
• D)activity range and variability.

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Definitions:

Pension Expense

The cost recognized by an employer for maintaining a pension plan for its employees over a period.

Actual Return

The real gain or loss achieved on an investment over a specific period, including interest, dividends, and capital gains.

Expected Return

The anticipated amount of profit or loss one expects from an investment over a specified period, considering all potential outcomes.

Service Cost

The portion of the cost of a pension or other post-employment benefit plan attributed to services rendered by employees in the current period.