Accounting for a defined contribution pension plan is simpler than accounting for a defined benefit plan.

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Accounting for a defined contribution plan is simpler as it involves recording employer contributions and investment earnings, and the employees bear the investment risk. In contrast, accounting for a defined benefit plan involves complex actuarial calculations to determine the employer's obligation to provide retirement benefits, based on estimates of future employee compensation, mortality rates, retirement patterns, and investment returns.

Accounting for a Defined Contribution Pension Plan Is Simpler Than