In estimating annual pension expense,which of the following factors would not be taken into consideration?
A)Current financial condition of the company.
B)Expected rate of return to be earned on pension fund assets.
C)Employee turnover rates.
D)Compensation levels and estimated rate of pay increases.

Question

Quizplus · Accepted Answer

The current financial condition of the company is not a direct factor in estimating annual pension expense. The calculation typically involves expected returns on pension fund assets, employee turnover rates, and compensation levels including estimated pay increases, rather than the immediate financial status of the company.

In Estimating Annual Pension Expense,which of the Following Factors Would