Ergonomics Awareness Training for Supervisors Practice Test

True or False: Lost work time is considered a direct cost.

1. True

2. False

3. Only for project tracking

4. Depends on the severity of the injury

The correct answer is: False

Lost work time is indeed considered an indirect cost rather than a direct cost. Direct costs typically include expenses that can be directly attributed to a specific project or activity, such as wages, materials, and equipment. Lost work time, however, reflects the broader impacts of an incident or injury, including diminished productivity and the potential need for temporary replacements, which are not easily assigned to specific expenditures of a project. Focusing on the nature of indirect costs, they often encompass broader financial implications that arise from workplace incidents, such as decreased morale, increased overtime to cover absent employees, and potential impact on team cohesion. Overall, recognizing lost work time as an indirect cost helps organizations more comprehensively assess the full financial impact of workplace injuries or accidents, which is essential for effective safety management and prevention strategies.