Question

FedCo is going to send Anthony away on a temporary business trip and wants to provide him with a per diem allowance for lodging, meals, and incidentals. Under an accountable plan, the entire amount paid to Anthony is automatically deemed substantiated. What is the purpose of providing Anthony with a per diem allowance?

1) To cover the cost of lodging, meals, and incidentals during the business trip
2) To reimburse Anthony for any expenses he incurs during the business trip
3) To provide Anthony with additional income
4) To ensure that Anthony has enough money for personal expenses during the business trip

Answer 1

The purpose of providing Anthony with a per diem allowance is to reimburse him for any expenses he incurs during the business trip.

Step-by-step explanation:

The purpose of providing Anthony with a per diem allowance is 2) To reimburse Anthony for any expenses he incurs during the business trip. A per diem allowance is a fixed amount of money that is given to employees to cover their expenses while on a business trip. By providing a per diem allowance, the company ensures that Anthony is reimbursed for the costs of lodging, meals, and incidentals that he may incur during the trip. This helps Anthony manage his expenses and eliminates the need for him to submit individual expense reports for reimbursement.