Actuarial Note: Fixed and Variable Expenses [Discussion]

As one who is constantly being tripped up by terminology I find Mr. Roberts' paper on Fixed and Variable Expenses extremely helpful. It should be required reading for those of us who are faced with the forthcoming study of expenses by size of risk for Workmen's Compensation on Liability lines. Such a study after all concerns itself with an analysis of "fixed expenses" which include those defined by Mr. Roberts as " ' ... costs independent of premium,' 'minimum costs per policy', ""costs independent of exposure,' etc." The fact that these expenses are subsequently related to premiums (by size) only makes it of increasing importance to recognize differences not only in terminology, but also in measurability and controllability.