The three types of formulas used to determine pension benefits for defined benefit pension funds are the following I. Flat benefit formula II. Career average formula I. Final pay formula IV. Margherita formula O A. I & II O B. II & IV O C.I, II & II O D. I, II, II & IV

The three types of formulas used to determine pension benefits for defined benefit pension funds are the following I. Flat benefit formula II. Career average formula I. Final pay formula IV. Margherita formula O A. I & II O B. II & IV O C.I, II & II O D. I, II, II & IV

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 4C

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Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

The three types of formulas used to determine pension benefits for defined benefit pension funds are the following
I. Flat benefit formula
II. Career average formula
I. Final pay formula
IV. Margherita formula
A. 1 & II
B. II & IV
C.I, II & II
O D.I, II, III & IV

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