Question

A public-sector agency is struggling to meet fiscal responsibilities. The concern is that public retirement funds are outpacing revenues being generated. You are being asked to analyze and present your findings to the leadership team. Which metric would be one of the best to measure?

A. Benefit costs as a percentage of revenue
B. Benefit costs as a percentage of expense
C. Retiree benefit cost as a percentage of expense
D. Compensation as a percentage of expense

Answer 1

(A) Benefit costs as a percentage of expense is one of the best metrics to measure the fiscal responsibilities of a public-sector agency struggling to meet them.

Step-by-step explanation:

In order to measure the fiscal responsibilities of a public-sector agency and its struggle to meet them, one of the best metrics to consider would be Benefit costs as a percentage of expense. This metric helps analyze the proportion of expenses allocated to retiree benefits in relation to the overall expenses incurred by the agency.

By calculating this percentage, it provides insight into the financial burden of retirement funds and whether they are outpacing the revenues being generated.