Differential Cost Analysis Techniques In Occupational Healt

Occupational health promotion or wellness programs are revolutionary approaches to containing skyrocketing health care costs. These programs also are prime targets for accounting analyses, and differential cost analyses techniques can be adapted to measure their effectiveness in financial terms. In a study performed on the Health and Weight Loss Program at Kimberly-Clark Corp., cost data were collected for program participants and classified as direct or indirect, or fixed and variable. Data on health care, sick leave absences, and workers compensation claims were gathered as well. In addition, cost and benefit data were incorporated into income statement formats, and other traditional accounting measures were calculated to determine the program's financial success. However, this study raises numerous problems and issues for future accounting analyses. These include: 1. research methodology, 2. accounting measurement, 3. database requirements, and 4. communications.