Everything Else Constant, What Is the Maximum Expected Loss Ratio

question 53

Essay

Everything else constant, what is the maximum expected loss ratio that would yield a profitable line after including investment income?

Understand the concepts of absorption and activity-based costing (ABC).

Calculate the full cost of a product using absorption costing.

Calculate the full cost of a product using activity-based costing (ABC).

Identify and calculate the cost drivers in activity-based costing.

---

Definitions:

Fatalistic Belief

The belief that all events are predetermined and therefore inevitable, often leading to a resignation to one's fate.

Culture of Poverty

A fatalistic belief system held by the poor as an adaptation to systemic discrimination.

Perspective

An attitude towards or a way of regarding something; a point of view influenced by one's beliefs, experiences, or culture.

Poor People

Individuals or groups who lack the financial resources to meet basic-life needs like food, shelter, and clothing.