Which of the following would not be a component of pension expense?

A) prior service cost amortization
B) interest cost
C) deferred compensation
D) return on assets

Question

Which of the following would not be a component of pension expense?A) prior service cost amortizationB) interest costC) deferred compensationD) return on assets

Samantha Burke · Accepted Answer

Final Answer : C, Explanation :  Deferred compensation is a separate expense from pension expense, as it refers to compensation that has been earned but deferred to a later date. The other options (prior service cost amortization, interest cost, and return on assets) are all components of pension expense.

Which of the following would not be a component of pension expense?

A) prior service cost amortization
B) interest cost
C) deferred compensation
D) return on assets

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Learning Objectives

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