The three components of pension expense that are present most often are:______.
A. Service cost, contribution cost, and prior service cost.
B. Service cost, prior service cost, and gain on plan assets.
C. Service cost, interest cost, and expected return on plan assets.
D. Service cost, interest cost, and gain from revisions in pension liability.

Respuesta :

Answer:

C. Service cost, interest cost, and expected return on plan assets.

Explanation:

  • A pension expression is an amount that the business charges to expense in relation to the liabilities of the pension payable of the employees and the amount of the expense vary and depends on whether the person is and to benefit from it  
  • The components of the pension plan include the Service Cost, Interest Cost, the Return on Plan Assets, and the Prior Service Cost, and all the Gains and Losses.
  • The service cost includes the future compensation of the employees. The interest cost is his is interest in the projected benefit obligation.  
  • The Actual rate of return on an asset plan is the ending plan assets, that forms the contribution and benefit payments, the gain or the loss resulting from changes in the value of a projected benefit