Costs related to a new pension plan that are necessary to "catch up" for services rendered prior to the inception of the pension plan are classified as:

Question

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Past service costs refer to expenses that are recognized for benefits provided to employees in periods prior to the implementation of a pension plan. These costs are incurred to account for the pension benefits that employees have earned but were not previously covered by a pension plan, essentially "catching up" for the time before the plan was in place.

Costs Related to a New Pension Plan That Are Necessary