Question

Which of the following is NOT considered an indirect cost of workplace accidents?

A) Medical expenses
B) Increased insurance premiums
C) Loss of productivity
D) Employee salaries

Answer 1

Employee salaries are considered direct costs rather than indirect costs of workplace accidents. (option D)

Step-by-step explanation:

Employee salaries are considered direct costs rather than indirect costs of workplace accidents. Indirect costs are those that are not directly traceable to a specific product or service and are typically associated with the consequences of accidents or incidents. In the context of workplace accidents, indirect costs include medical expenses, increased insurance premiums, and loss of productivity.

Employee salaries, on the other hand, are part of the direct costs associated with the production of goods or services. While there may be some short-term impact on productivity due to an employee's absence after an accident, the salary itself is not an additional cost directly resulting from the accident. Instead, it falls under the regular expenses of employing staff.

Understanding the distinction between direct and indirect costs is crucial for businesses to accurately assess the financial implications of workplace accidents. By identifying and managing indirect costs, organizations can develop strategies to improve workplace safety, reduce accidents, and mitigate the associated financial burdens.