Discussion 2 Week 5 Cost Management Assignment Example | Topics and Well Written Essays - 250 words

Discussion 2 Week 5 Cost Management - Assignment Example Accordingly, â€Å"The costs associated with cleaning up an oil spill are strongly influenced by the circumstances surrounding the spill including: the type of product spilled; the location and timing of the spill; sensitive areas affected or threatened; liability limits in place; local and national laws; and cleanup strategy. The most important factors determining a per-unit amount (either per-gallon or per-tonne) cost are location and oil type, and possibly total spill amount† (Etkin, 1999, p. 1). On the other hand, hiding the culpability now could mean deferment of the mentioned costs but would mean paying more in the future in terms of legal expenses associated with the chemical leak, especially to lives and properties that were affected. In addition, the negative image that the incident would generate for the organization could cost them their reputation and would even cause a significant loss in the financial condition of the organization. The fact is corroborated, as asserted: â€Å"those who have been affected by chemical leaks and spills, whether residents of the area or local business owners, may be entitled to financial compensation for the harm they have experienced. The at-fault industrial plant, oil company or other corporation may be held liable for the injuries and property damage the incident has caused† (Toxic Chemical Leaks & Spills, 2012, p. 1). Therefore, the delay in admitting the fault could cause greater damages which would be more costly for the organization in the long run because the same cleanup cost elements would be incurred, in addition to legal expenses and the damage to the reputation of the