The safety-related cost engineering in work environments from the management accounting approach and using modern performance measurement Systems
Subject Areas : Management AccountingRoya Monem 1 , Mozhgan Saeidi 2
1 - دانشجوی دکتری حسابداری دانشگاه آزاد اسلامی واحد علوم تحقیقات تهران
2 - دانشجوی دکتری حسابداری دانشگاه آزاد واحد علوم تحقیقات، مدرس دانشگاه و موسسات آموزش عالی
Keywords: management accounting, Cost Engineering, Safety in work environment, Safety related costs, Value of Human Life, Benefit-to-Cost analysis,
Abstract :
Recently, professional and highly skilled man power is the most valuable possession in any given organization, and that is why it is so essential to prepare a suitable and safe work environment .Then it is most of the importance to be focused on cost engineering in safety aspects, through benefit-to-cost opinion and consequently a logic and effective measurement of performance .Accordingly, this article is focused on safety cost measuring systems and designing cost evaluating routines, also how to use these kinds of information in decision- making and performance measurement system in organizations .Cost evaluating, is the main method uses to assessment the safety related costs in work environment, which calculate the cost of every single damage (cost per injury) or an overall cost of an accident. However, management accounting must treat some non-monetory aspects as well, the concepts like how much safe the staff do feel and how to increase the safety in general. In safety related investments, although the costs are known, the assessment of monetary value of the benefits is too difficult, and then using the modern performance measurement methods like Balanced Scorecard approach is necessary .The article also has a glance on the ability of commencing the peculiar management accounting methods oriented in safety decision making and using them in improvement the conventional routines. These methods are Balanced Scorecard approach the payback period and benefit-to-cost analysis. The valuing of human life also argues with in benefit-to-cost analysis .
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