Zenith Technologies has recently implemented a defined contribution plan for its employees. Under this plan, the company contributes a fixed percentage of each employee's salary to an individual account for retirement. Employees have the option to make additional voluntary contributions to their accounts. At year-end, the company must account for the amounts contributed to these accounts.

After reviewing the plan's details, the CFO of Zenith Technologies is analyzing the impact on financial statements and reported compensation expenses. The CFO wants to ensure compliance with the Financial Accounting Standards Board (FASB) guidelines regarding defined contribution plans.

Considering these details, which statement about defined contribution plans is correct?