Decision to cut post retirement health benefits


Problem: Phillip Regan, CEO of Relief Dynamics, Inc., a large defense contracting firm, is considering ways to improve the company's financial position after several years of sharply declining profitability. One way to do this is to reduce or completely eliminate Relief Dynamic's commitment to present and future retirees who have full medical and dental benefits coverage. Despite financial problems, the company is still committed to providing excellent pension benefits.

Address the given:

Q1. Discuss what accounting factors Regan should consider before making his decision to cut post retirement health benefits.

Q2. Discuss what other non-financial factors should be considered in the decision.

Solution Preview :

Prepared by a verified Expert
Business Law and Ethics: Decision to cut post retirement health benefits
Reference No:- TGS01757156

Now Priced at $20 (50% Discount)

Recommended (94%)

Rated (4.6/5)