A National Accounting Case Competition is being held at a conference in Calgary, Alberta this year. You and the other two members of your team were selected to represent your school in the competition. To obtain funding for your 4-day trip, your team is preparing a budget to submit to your school for approval. Your team has listed the following expense items for 3 people for 4 nights:

Items…………………………………………........... Cost

Flight $500/person…………………………... $1,500

Parking on campus¹…………………………..….. 12

Taxi (to and from Airports) ……………………120

Hostel $40/night per person………………….480

Residence²…………………………………..…........300

Food on campus³ ………………………………....240

Food during conference⁴……………………….480

1. One of the team members pays $90/month for a parking pass on campus. Four days of parking cost on campus is $12.

2. Three team members live on campus and pay rent of $750/month. Four days of residence rent for 3 members for 4 nights away is $300.

3. Three team members pay for a campus meal plan of $600/month. No refund will be reimbursed to students who miss their meals.

4. The team estimates the food cost will be $40/day for 3 meals.

REQUIRED

A. Identify the relevant and irrelevant items for preparing your budget.

B. Based on (A), prepare your budget to be submitted.

C. One of your team members questions whether food on campus should be included in your budget. He argues that they should get money back from the meals not consumed during the 4 days at the conference. He suggests that instead of listing two food costs on the budget, the food costs should be combined and listed as $720. Do you agree with him? Is there any ethical issue in his suggestion? How do you resolve the issue here, if you disagree with his approach?