CIEE Cost-Benefit Analysis of Interventions 3

Question 1

In ergonomic CBA, 'presenteeism' refers to the financial impact of:

Accepted Answer

Workers being physically present but performing below full capacity due to pain or discomfort

Answer

Presenteeism captures productivity losses from employees who come to work despite musculoskeletal discomfort, reducing output without generating an absence record.

Question 2

A sensitivity analysis in an ergonomic cost-benefit study is used to:

Accepted Answer

Test how changes in key assumptions affect the overall CBA outcome

Answer

Sensitivity analysis varies uncertain inputs (e.g., injury rate reduction estimates) to determine how robust the CBA conclusion is under different assumptions.

Question 3

When calculating the return on investment (ROI) for an ergonomic program, the correct formula is:

Accepted Answer

ROI = ((Net Benefits − Program Costs) / Program Costs) × 100

Answer

ROI expresses net gain as a percentage of the investment, calculated as net benefits (benefits minus costs) divided by program costs, multiplied by 100.

Question 4

A manufacturing plant reports 15 MSD claims per year averaging $8,000 each in direct costs. An ergonomic program costing $30,000 is expected to reduce claims by 60%. What is the annual net benefit?

Accepted Answer

$42,000

Answer

Annual claim cost = 15 × $8,000 = $120,000; 60% reduction = $72,000 saved; net benefit = $72,000 − $30,000 = $42,000.

Question 5

Which of the following would be classified as an 'intangible benefit' in an ergonomic CBA?

Accepted Answer

Improved employee morale and job satisfaction

Answer

Intangible benefits like improved morale are real but difficult to assign a precise monetary value, distinguishing them from quantifiable hard savings.

(CIEE) Certified Industrial Ergonomic Evaluator Practice Test

(CIEE) Certified Industrial Ergonomic Evaluator Practice Test

CIEE Cost-Benefit Analysis of Interventions 3