Define prior service cost, Cost Accounting

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Define prior service cost

Response to the following :

1. Define prior service cost. How is it reported in the financial statements? How is it included in pension expense?

2. How should gains or losses related to pension plan assets be recognized? How does this treatment compare to that for gains or losses related to the pension obligation?

If possible, please give examples to better understand your response.

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Cost Accounting: Define prior service cost

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Cost Accounting: Define prior service cost

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