Pension expense for a defined contribution plan always exceeds the employer's contribution to the plan.

Question

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Pension expense for a defined contribution plan is equal to the employer's contribution to the plan, as the employer's obligation is limited to the contributions made to the plan. The expense may be affected by investment returns and administrative expenses, but it should not exceed the employer's contribution.

Pension Expense for a Defined Contribution Plan Always Exceeds the Employer's