A useful measure for an organization is the total of the organization's 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

Quizplus · Accepted Answer

The measure described in the question refers to the cost of risk, which includes all expenses related to treating and managing loss exposures for an organization. It is a useful measure to evaluate the effectiveness of an organization's risk management programs and to compare the cost of managing risk to the potential losses that could occur. The other options, such as cost of capital and cost of goods sold, are not relevant to the topic of the question.

A Useful Measure for an Organization Is the Total of the Organization's