The three components of pension expense that are present most often are:

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The three components of pension expense that are present most often are service cost, interest cost, and expected return on plan assets. Service cost is the present value of the benefits earned by employees during the current year, interest cost is the increase in the projected benefit obligation due to the passage of time, and expected return on plan assets is the estimated return on the assets held in the pension plan. These components are used to determine the total pension expense for the year.

The Three Components of Pension Expense That Are Present Most