Interest cost included in pension expense recognized for a period by an employer sponsoring a defined-benefit pension plan represents the

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Interest cost included in pension expense is the cost of financing the pension obligation and relates to the increase in the projected benefit obligation due to the passage of time. This cost is calculated as a function of the projected benefit obligation at the beginning of the period and the discount rate used to measure the present value of future benefit payments.

Interest Cost Included in Pension Expense Recognized for a Period