Los Feliz Company is a midsize construction company. Los Feliz is evaluating its workers' compensation insurance options and trying to decide whether to go with a guaranteed cost or a loss sensitive program. Which of the following is an advantage of a guaranteed cost program for Los Feliz?
a. A guaranteed cost program makes determining how much to include for workers' compensation insurance in a bid for work much easier to compute.
b. A guaranteed cost program offers better cash flow than a loss sensitive plan.
c. A guaranteed cost program offers more time flexibility than a loss sensitive plan.
d. A guaranteed cost program would reward Los Feliz for favorable loss experience.