Question

In: Accounting

For which type(s) of retirement plans is the yearly pension expense affected by expected market value...

For which type(s) of retirement plans is the yearly pension expense affected by expected market value changes of the assets of the plan?

Select one:

a. Both Defined Benefit and Defined Contribution

b. Neither Defined Benefit nor Defined Contribution

c. Defined Benefit, but not Defined Contribution

d. Defined Contribution, but not Defined Benefit

Solutions

Expert Solution

d

As in direct contribution plan, amount is typically invested in selected mutual funds and money market funds which may get affected by expectedmarket value changes of assets of the plan.


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