Cost Allocation Method


Definition of "Cost allocation method"

Tim Watson real estate agent
Tim Watson, Real Estate Agent Tim Watson Realty

Method of funding a pension plan through: an individual level cost basis, where future benefits for the employee are estimated and contributions are made periodically while the employee is working to fund these future benefits; or an aggregate level cost basis, where future benefits for all current employees are estimated and aggregate contributions are made periodically while the current employees are working to fund these future benefits.

 

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