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KMID : 0366519970170010119
Annual Bulletin Seoul Health
1997 Volume.17 No. 1 p.119 ~ p.128
A Study on the Estimating of Industrial Accident Loss Cost in Construction
Kal Won-Mo

Abstract
Estimating the cost of injuries and accidents to an organization is very important to figure out about how much well each organization has run his company and how much efficiently he has got the results using a certain amount of the expense for safety. There are two major classes of costs resulting from injuries and accidents, the direct costs and the indirect costs. Especially Heinrich¡¯s theory, which the ratio of direct versus indirect cost has been used 1:4, has applied all the companies in Korea. I describe here the generalized method to figure out the indirect costs and the economic impact on cost-volume-profit performance standards. One construction company has been a pilot for this study. It is found that the ratio of direct versus indirect cost should be 1:1.53.
KEYWORD
Accident cost, direct cost, indirect cost
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