Which term best describes additional costs that arise from a loss of productivity?

The correct choice, which refers to the additional costs arising from a loss of productivity, is Indirect Costs. Indirect costs are often associated with negative impacts that are not directly linked to a specific incident but still affect an organization’s financial wellbeing. When productivity decreases due to accidents, injuries, or other disruptions, these indirect costs can include things like diminished output, increased overtime for remaining employees, and the costs related to retraining workers or hiring temporary staff.

Understanding the concept of indirect costs is essential in occupational health and safety because it highlights the broader financial implications of workplace incidents beyond the immediate, visible costs such as medical bills or property damage. It encourages organizations to recognize and address factors that contribute to productivity loss and emphasizes the importance of preventative measures in health and safety practices.