Which statement is true regarding the aggregate actuarial cost method for pension plans?

The selected answer is accurate because under the aggregate actuarial cost method, a schedule of funding progress is not mandated. This method is primarily used to assess the overall funding status of the pension plan without the requirement of regularly reporting specific funding progress schedules. This approach combines demographic, economic, and actuarial assumptions to calculate a single value for the actuarial accrued liability, which simplifies the reporting process in certain contexts.

In contrast, the requirement for a funding progress schedule typically pertains to the entry age normal cost method, which emphasizes annual valuation and detailed tracking of funding status over time. Since the aggregate method does not necessitate these detailed reports, the statement that it is not required aligns with how this specific actuarial method is utilized in practice. Consequently, this distinction helps in understanding the broader landscape of pension accounting and the specific applications of different actuarial cost methods.