1 Accounting Research Centre - ARC, Aarhus School of Business, Aarhus BSS, Aarhus University2 Department of Business Studies, Aarhus School of Business, Aarhus BSS, Aarhus University3 unknown
The Systematic Accident Cost Analysis (SACA) project is a research project carried out during 2001 by The Aarhus School of Business and PricewaterhouseCoopers Denmark with financial support from The Danish National Working Environment Authority. It empirically tested a method - the SACA method - for evaluating the visible and hidden costs of corporate occupational accidents. It also focused on whether the registration, processing and reporting of these costs could be integrated in the corporate accounting information system. The project was based on case studies in 9 Danish companies within 3 different industry sectors. The main conclusions are that only 2/3 of the costs of occupational accidents are visible in corporate accounting systems while 1/3 is hidden from management view. The highest cost of occupational accidents for a company with 3.600 employees was estimated to approximately $682.000. The integration of occupational cost calculations into accounting systems such as SAP R/3 is considered unlikely for the relatively small Danish companies although technically possible. The costs of doing this and the subsequent costs of registration and control are considered prohibitive. A way forward could be to periodically analyze the costs of occupational accidents and develop standard cost estimates for use in assessing company costs of occupational accidents.