Author Question: A useful measure for an organization to monitor is the total expenditures for treating loss ... (Read 74 times)

magmichele12 · **on:** Jul 11, 2018

A useful measure for an organization to monitor is the total expenditures for treating loss exposures including retained losses, loss control expenses, insurance premiums, and other related expenses. This measure is called the organization's

A) cost of capital.
B) cost of goods sold.
C) cost of risk.
D) cost of equity.

Question 2

Which statement about a company's cost of risk is (are) true? I. Cost of risk includes insurance premiums and retained losses. II. Reducing the cost of risk increases profitability.

A) I only
B) II only
C) both I and II
D) neither I nor II