Activity 12

Think about your workplace. State two examples where changes involving expenditure have been required by legislation or industry standard rather than being decided upon by your organization.

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There are a number of possibilities you may have suggested. Typically this required change will involve:

• health and safety equipment such as first-aid kit, machine guards, face masks, eye glasses;

• training costs associated with handling equipment safely;

• toilet and washing facilities and rest areas;

• removal of waste materials and cleaning.

The organization must spend money on these matters and they are known as committed costs.

You will still need to make some sort of financial case, because there are different ways of meeting such requirements, of course. For instance, waste disposal may be carried out by your organization or by using contractors. Such decisions have an impact on the overall cost but, nevertheless, some expenditure is still essential on these matters.

As a first line manager, it is important for you to ensure that your organization adheres to the law and industry standards,...