The same interest rate is used to compute service cost,interest cost,and return on plan assets.

Question

Quizplus · Accepted Answer

Different rates are used for these calculations: the service cost is typically calculated using the discount rate, interest cost is based on the projected benefit obligation's discount rate at the beginning of the period, and the return on plan assets is based on the actual return of the plan's assets, which can vary.

The Same Interest Rate Is Used to Compute Service Cost,interest