Froogled By:: Elias Makere, FSA, MAAA
Last Froogled:: 6/7/2026

ASOP 4 | §2.9 | COST ALLOCATION PROCEDURE

A procedure that determines the periodic cost for a plan (for example, the procedure to determine the net periodic pension cost under accounting standards). The procedure uses an actuarial cost method, and may use an asset valuation method or an amortization method.

ASOP 4 | Commentary Section 2.9 | COMMENT ON SECTION 2.9

Section 2.9, Cost Allocation Procedure
Comment	Response
One commentator suggested changing the second sentence in section 2.9 to state, “The procedure uses an actuarial cost method, and may use an asset valuation method and/or an amortization method.”	The reviewers disagree and made no change as the use of “and/or” is inconsistent with ASOP style since the use of “or” incorporates “and.”

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ASOP 4 | §2.9 | COST ALLOCATION PROCEDURE

ASOP 4 | Commentary Section 2.9 | COMMENT ON SECTION 2.9

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