Duane works for a heavy equipment operator. Recently, the brakes failed on an excavator Duane was assigned to operate. Duane and a construction worker were injured when the excavator drove into a building on the site. This incident was heavily covered in the news and the company now faces fines and a downturn in business due to the smear on its reputation. These expenses are best described as examples of which of the following?

Question

Quizplus · Accepted Answer

These expenses are indirect costs as they are not directly tied to the operation of the equipment but are consequences of the incident, such as reputational damage and business downturn.

Duane Works for a Heavy Equipment Operator