Pension: A fixed sum of money, receivable in future or after the age of retirement, which the beneficiary has invested during the period of employment is termed as pension. This pension is mostly offered to government, public sector and some private sector employees. To determine the meaning of a private pension plan and the difference between the contributory and noncontributory plan.

Question

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Answer 1

Question

Chapter 20, Problem 1Q

To determine

Pension: A fixed sum of money, receivable in future or after the age of retirement, which the beneficiary has invested during the period of employment is termed as pension. This pension is mostly offered to government, public sector and some private sector employees.

To determine the meaning of a private pension plan and the difference between the contributory and noncontributory plan.

Expert Solution & Answer

Explanation of Solution

Private pension plan: A fixed sum of money, receivable in future or after the age of retirement, which the company has invested during the period of employment is termed as private pension plan. Here, the company means the organization in which the beneficiary works.

Difference between contributory and noncontributory pension plan:

Contributory pension plan: In this contributory pension plan, the beneficiary initiates some investment along with the organization in order to increase the future receivable. This increases the benefit from the pension plan.

Noncontributory pension plan: In this noncontributory pension plan, the beneficiary makes no investment along with the organization in order to increase the future receivable. The benefit includes only the contribution of organization.

Conclusion

Therefore, the difference in the plan is based on the contribution of the beneficiary.

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Students have asked these similar questions

Q. General Account

Accurate Answer

Sterling Industrial estimated the following annual costs: • Expected annual direct labor hours: 60,500 Expected annual direct labor cost: $850,000 • Expected machine hours: 35,500 • Expected material cost for the year: $1,025,000 • Expected manufacturing overhead: $1,312,000 Determine the overhead allocation rate using direct material cost as the allocation base.

Answer 2

Question

Chapter 20, Problem 1Q

To determine

Pension: A fixed sum of money, receivable in future or after the age of retirement, which the beneficiary has invested during the period of employment is termed as pension. This pension is mostly offered to government, public sector and some private sector employees.

To determine the meaning of a private pension plan and the difference between the contributory and noncontributory plan.

Expert Solution & Answer

Explanation of Solution

Private pension plan: A fixed sum of money, receivable in future or after the age of retirement, which the company has invested during the period of employment is termed as private pension plan. Here, the company means the organization in which the beneficiary works.

Difference between contributory and noncontributory pension plan:

Contributory pension plan: In this contributory pension plan, the beneficiary initiates some investment along with the organization in order to increase the future receivable. This increases the benefit from the pension plan.

Noncontributory pension plan: In this noncontributory pension plan, the beneficiary makes no investment along with the organization in order to increase the future receivable. The benefit includes only the contribution of organization.

Conclusion

Therefore, the difference in the plan is based on the contribution of the beneficiary.

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Answer 3

Question

Chapter 20, Problem 1Q

To determine

Pension: A fixed sum of money, receivable in future or after the age of retirement, which the beneficiary has invested during the period of employment is termed as pension. This pension is mostly offered to government, public sector and some private sector employees.

To determine the meaning of a private pension plan and the difference between the contributory and noncontributory plan.

Expert Solution & Answer

Explanation of Solution

Private pension plan: A fixed sum of money, receivable in future or after the age of retirement, which the company has invested during the period of employment is termed as private pension plan. Here, the company means the organization in which the beneficiary works.

Difference between contributory and noncontributory pension plan:

Contributory pension plan: In this contributory pension plan, the beneficiary initiates some investment along with the organization in order to increase the future receivable. This increases the benefit from the pension plan.

Noncontributory pension plan: In this noncontributory pension plan, the beneficiary makes no investment along with the organization in order to increase the future receivable. The benefit includes only the contribution of organization.

Conclusion

Therefore, the difference in the plan is based on the contribution of the beneficiary.

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Answer 4

Question

Chapter 20, Problem 1Q

To determine

Pension: A fixed sum of money, receivable in future or after the age of retirement, which the beneficiary has invested during the period of employment is termed as pension. This pension is mostly offered to government, public sector and some private sector employees.

To determine the meaning of a private pension plan and the difference between the contributory and noncontributory plan.

Expert Solution & Answer

Explanation of Solution

Private pension plan: A fixed sum of money, receivable in future or after the age of retirement, which the company has invested during the period of employment is termed as private pension plan. Here, the company means the organization in which the beneficiary works.

Difference between contributory and noncontributory pension plan:

Contributory pension plan: In this contributory pension plan, the beneficiary initiates some investment along with the organization in order to increase the future receivable. This increases the benefit from the pension plan.

Noncontributory pension plan: In this noncontributory pension plan, the beneficiary makes no investment along with the organization in order to increase the future receivable. The benefit includes only the contribution of organization.

Conclusion

Therefore, the difference in the plan is based on the contribution of the beneficiary.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 20, Problem 1Q

To determine

Pension: A fixed sum of money, receivable in future or after the age of retirement, which the beneficiary has invested during the period of employment is termed as pension. This pension is mostly offered to government, public sector and some private sector employees.

To determine the meaning of a private pension plan and the difference between the contributory and noncontributory plan.

Expert Solution & Answer

Explanation of Solution

Private pension plan: A fixed sum of money, receivable in future or after the age of retirement, which the company has invested during the period of employment is termed as private pension plan. Here, the company means the organization in which the beneficiary works.

Difference between contributory and noncontributory pension plan:

Contributory pension plan: In this contributory pension plan, the beneficiary initiates some investment along with the organization in order to increase the future receivable. This increases the benefit from the pension plan.

Noncontributory pension plan: In this noncontributory pension plan, the beneficiary makes no investment along with the organization in order to increase the future receivable. The benefit includes only the contribution of organization.

Conclusion

Therefore, the difference in the plan is based on the contribution of the beneficiary.

Answer 6

Chapter 20, Problem 1Q

To determine

Pension: A fixed sum of money, receivable in future or after the age of retirement, which the beneficiary has invested during the period of employment is termed as pension. This pension is mostly offered to government, public sector and some private sector employees.

To determine the meaning of a private pension plan and the difference between the contributory and noncontributory plan.

Expert Solution & Answer

Explanation of Solution

Private pension plan: A fixed sum of money, receivable in future or after the age of retirement, which the company has invested during the period of employment is termed as private pension plan. Here, the company means the organization in which the beneficiary works.

Difference between contributory and noncontributory pension plan:

Contributory pension plan: In this contributory pension plan, the beneficiary initiates some investment along with the organization in order to increase the future receivable. This increases the benefit from the pension plan.

Noncontributory pension plan: In this noncontributory pension plan, the beneficiary makes no investment along with the organization in order to increase the future receivable. The benefit includes only the contribution of organization.

Conclusion

Therefore, the difference in the plan is based on the contribution of the beneficiary.

Answer 7

Chapter 20, Problem 1Q

To determine

Pension: A fixed sum of money, receivable in future or after the age of retirement, which the beneficiary has invested during the period of employment is termed as pension. This pension is mostly offered to government, public sector and some private sector employees.

To determine the meaning of a private pension plan and the difference between the contributory and noncontributory plan.

Answer 8

Expert Solution & Answer

Explanation of Solution

Private pension plan: A fixed sum of money, receivable in future or after the age of retirement, which the company has invested during the period of employment is termed as private pension plan. Here, the company means the organization in which the beneficiary works.

Difference between contributory and noncontributory pension plan:

Contributory pension plan: In this contributory pension plan, the beneficiary initiates some investment along with the organization in order to increase the future receivable. This increases the benefit from the pension plan.

Noncontributory pension plan: In this noncontributory pension plan, the beneficiary makes no investment along with the organization in order to increase the future receivable. The benefit includes only the contribution of organization.