Which of the following statements about pensions is true? Under a defined-contribution pension plan, the...
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Which of the following statements about pensions is true? Under a defined-contribution pension plan, the employer's contribution is fixed but the benefits to the employee can vary. The increase in the PBO from employees working one additional year is called interest cost. O In a year that a company amends its pension plan to provide retroactive benefits to its employees, the prior service costs increase pension expense for the full value of the plan amendment. O Under a defined-contribution pension plan, the employer's contribution can vary but the benefits to the employee are fixed.
please explain why as well
Which of the following statements about pensions is true? Under a defined-contribution pension plan, the employer's contribution is fixed but the benefits to the employee can vary. The increase in the PBO from employees working one additional year is called interest cost. In a year that a company amends its pension plan to provide retroactive benefits to its employees, the prior service costs increase pension expense for the full value of the plan amendment. Under a defined-contribution pension plan, the employer's contribution can vary but the benefits to the employee are fixed
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