Your company has a travel policy that reimburses employees for the ordinary and necessary costs of business
Question:
Consider this example. An employee obtained a business-class ticket for $9,537 and traveled the following itinerary:
Required
a. Compute the business portion of the airfare and state the basis for the indicated allocation that is appropriate according to each of the following independent scenarios:
(1) Based on the maximum reimbursement for the employee.
(2) Based on the minimum cost to the company.
b. Write a short report to management explaining the method that you think should be used and why. You do not have to restrict your recommendation to either of the methods in requirement(a).
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Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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