Why this is mistaken
Wrong: Interest cost is interest paid to retirees or lenders.
Correction: Interest cost is the period increase in the measured obligation caused by the passage of time.
Where to watch
When this mistake may appear
- A benefit-plan analysis treats this claim as true: Interest cost is interest paid to retirees or lenders.
Check your work
Your work may contain this mistake if:
- Interest cost is interest paid to retirees or lenders.