What term refers to the daily money provided for expenses, such as meals and hotels on a business trip?

What term refers to the daily money provided for expenses, such as meals and hotels on a business trip?

• A. Daily allowance
• B. Per diem
• C. Travel stipend
• D. Mileage reimbursement

Answer: (B)

Per diem is the daily money provided to cover travel expenses such as meals and lodging on a business trip. It’s a fixed amount set by the employer for each day of travel, designed to simplify budgeting and expense reporting. Since the amount is predetermined, you don’t need to itemize every meal or hotel expense; some policies allow you to keep unused funds or require substantiation if you go over. Mileage reimbursement is limited to costs for driving a personal vehicle, calculated per mile. A travel stipend is a broader lump-sum for travel that isn’t inherently tied to a daily rate for meals and lodging. A daily allowance is a generic term, but per diem is the standard HR term for this purpose.

Per diem is the daily money provided to cover travel expenses such as meals and lodging on a business trip. It’s a fixed amount set by the employer for each day of travel, designed to simplify budgeting and expense reporting. Since the amount is predetermined, you don’t need to itemize every meal or hotel expense; some policies allow you to keep unused funds or require substantiation if you go over. Mileage reimbursement is limited to costs for driving a personal vehicle, calculated per mile. A travel stipend is a broader lump-sum for travel that isn’t inherently tied to a daily rate for meals and lodging. A daily allowance is a generic term, but per diem is the standard HR term for this purpose.