A Proposed Engineering Control Is Expected to Cut the Accident

question 23

Essay

A proposed engineering control is expected to cut the accident rate in half for a given process. Cost data for accidents with this process have been estimated by auditors as follows (average cost per accident):



Calculate the total annual accident cost reduction benefit expected for this proposed engineering control.

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Definitions:

Cash

A form of liquid asset that includes currency, coins, bank deposits, and other mediums of exchange that can be used immediately for transactions.

Trial Balance Totals

The aggregate amounts of all debits and credits in a company's trial balance, which should match to indicate that the accounting entries are balanced.

Journal Entry

A record in the accounting journal that details all the financial transactions of a business and their impact on its accounts.

Debit Portion

Part of a financial transaction that represents an increase in assets or expenses or a decrease in liabilities or equity, according to double-entry accounting principles.