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

Insurance

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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.

Answer: C) cost of risk.

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