Interest cost included in pension expense recognized for a period by an employer sponsoring a defined-benefit pension plan represents the increase in the fair value of plan assets due to the passage of time. amortization of the discount on accumulated OCI (PSC). shortage between the expected and actual returns on plan assets. increase in the projected benefit obligation due to the passage of time.

Suppose a holiday inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. it operates 365 days per year. the amount of operating income on rooms, assuming an occupancy* rate of 80% for the year, that will be generated for the entire year is *occupancy = % of rooms rented