Discuss the safety-related costs listed are they variable


COST SEPARATION

About eight years ago, Kicker faced the problem of rapidly increasing costs associated with workplace accidents. The costs included the following:

State unemployment insurance premiums

$100,000

Average cost per injury

$1,500

Number of injuries per  year

15

Number of serious injuries

4

Number of workdays lost

30

A safety program was implemented with the following features: hiring a safety director, new employee orientation, stretching required four times a day, and system- atic monitoring of adherence to the program by directors and supervisors. A year later, the indicators were as follows:

State unemployment insurance premiums

$50,000

Average cost per injury

$50

Number of injuries per  year

10

Number of serious injuries

0

Number of workdays lost

0

Safety director's starting salary

$60,000

Required:

1. Discuss the safety-related costs listed. Are they variable or fixed with respect to speak- ers sold? With respect to other independent variables (describe)?

2. Did the safety program pay for itself? Discuss your reasoning.

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Financial Accounting: Discuss the safety-related costs listed are they variable
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