FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Bridget Youhzi works for a large firm. Her alma mater has
asked her to make a presentation to the upcoming
accounting honor society's annual scholarship dinner. Her
firm supports the presentation because it hopes to recruit
more excellent employees like Bridget. The university is 196
miles from her office. In order to get to the dinner by 5:00
p.m., she will need to leave work at 1:00 p.m. She can drive
her personal car and be reimbursed $0.50 per mile. The
dinner ends at 9:00 p.m. Company policy allows her to spend
the night if the return trip is four hours or more. There is a
student-run inn and conference center across the street from
campus that charges $101 per night.
Instead of driving, she could catch a 3:00 p.m. flight that has
a round-trip fare of $300. Flying would require her to rent a
car for $39 per day and pay an airport parking fee of $25 for
the day. The company pays a per diem of $35 for incidentals
if the employee spends at least six hours out of town. (The
per diem would be for one 24-hour period for either flying or
driving.) As a manager, Bridget is responsible for recruiting
within a budget and wants to determine which is more
economical.
What is the total amount of expenses she would include on
her expense report if she flies?
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