SECTION 13-6 Travel Expenses pp. 440-442
Key Words to Know travel expenses (p. 440) Expenses required to travel for a business, for which the business will usually pay.
Formula Total Travel = Cost of + Cost of + Cost of + Additional Expenses Transportation Lodging Meals Costs
Example 1 The accounting department for Diversified Sales Company will reimburse Roger Martin for attending a 3-day marketing conference. He drove to the conference, so Diversified will pay him $0.35 per mile. Martin’s expenses included the following:
Example 1 (cont.) What is the total cost of sending Martin to the conference?
Example 1 Answer: Step 1 Find the cost of transportation. (240 × $0.35) + $7.20 $84.00 + $7.20 = $91.20
Example 1 Answer: Step 2 Find the cost of lodging. 2 × $174.50 = $349.00
Example 1 Answer: Step 3 Find the cost of meals. $29.12 + $48.20 + $19.37 = $96.69
Example 1 Answer: Step 4 Find the additional costs. Conference registration = $95.00
Example 1 Answer: Step 5 Find the total travel costs. Cost of + Cost of + Cost of + Additional Transportation Lodging Meals Costs $91.20 + $349.00 + $96.69 + $95.00 = $631.89
441:1-12