Derek Dingler conducts corporate training seminars on managerial accounting techniques across the country. He has an upcoming seminar in Philadelphia. Before the seminar, he will be in New York City and has two travel options:1. **Flying**: - Take the first flight on Friday morning from New York to Philadelphia, arriving two hours before the seminar. - Flight cost: $287. - Uber in Philadelphia: $68. - Meal per diem: $40 for a full day, $25 for half a day. - Hotel: $225 per night. 2. **Driving**: - Rent a car and drive three hours from New York City to Philadelphia the afternoon before the seminar. - Rental car cost including gas: $57 per day, needed for two full days. Post-seminar, he will return to New York City.**Question**: What are the relevant costs Derek Dingler must consider for traveling from New York City to Philadelphia?- [ ] Airfare- [ ] Car rental- [ ] Uber- [ ] One night of hotel- [ ] One-half day of per diem- [ ] None of these

Relevant costs These are those costs which affect the decision making based on various alternatives available. Sunk costs are those costs which are already incurred and it is used for some decision making based on past trends. These are the costs that cannot be recovered. Opportunity costs are those costs where among all the available alternatives one best possible and suitable alternative is selected. Here opportunity cost is those other alternatives which are left behind in order to select one best alternative. From the above the relevant costs are as follows 1. Air fare 2. Uber fee 3. Car rental.

Business

Accounting

erek Dingler conducts corporate training seminars on managerial accounting techniques all around the country. An pcoming training seminar is to be held in Philadelphia. Just rior to that engagement, Derek will be in New York City. He lans to stay in Philadelphia the night of the seminar, as the ext morning he plans to meet with clients about future aining seminar possibilities. One travel option is to fly from lew York to Philadelphia on the first flight on Friday horning, which will get him to Philadelphia two hours before he start of his seminar. The cost of that flight is $287. Uber ees for his time in Philadelphia will cost $68. His meal per iem is $40 for each full day and $25 for each half day. The otel cost is $225 per night. His second option is to rent a car nd drive the two hours to Philadelphia from New York City he afternoon before the seminar. The cost of the rental car mcluding gas is $57 per day and the car will be needed for wo full days. At the end of the meetings he will return to ew York City. What are the relevant costs that Derek Dingler has to onsider in making the decision whether to fly or drive from lew York City to Philadelphia?

erek Dingler conducts corporate training seminars on managerial accounting techniques all around the country. An pcoming training seminar is to be held in Philadelphia. Just rior to that engagement, Derek will be in New York City. He lans to stay in Philadelphia the night of the seminar, as the ext morning he plans to meet with clients about future aining seminar possibilities. One travel option is to fly from lew York to Philadelphia on the first flight on Friday horning, which will get him to Philadelphia two hours before he start of his seminar. The cost of that flight is $287. Uber ees for his time in Philadelphia will cost $68. His meal per iem is $40 for each full day and $25 for each half day. The otel cost is $225 per night. His second option is to rent a car nd drive the two hours to Philadelphia from New York City he afternoon before the seminar. The cost of the rental car mcluding gas is $57 per day and the car will be needed for wo full days. At the end of the meetings he will return to ew York City. What are the relevant costs that Derek Dingler has to onsider in making the decision whether to fly or drive from lew York City to Philadelphia?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Derek Dingler conducts corporate training seminars on managerial accounting techniques across the country. He has an upcoming seminar in Philadelphia. Before the seminar, he will be in New York City and has two travel options:

1. **Flying**:
- Take the first flight on Friday morning from New York to Philadelphia, arriving two hours before the seminar.
- Flight cost: $287.
- Uber in Philadelphia: $68.
- Meal per diem: $40 for a full day, $25 for half a day.
- Hotel: $225 per night.

2. **Driving**:
- Rent a car and drive three hours from New York City to Philadelphia the afternoon before the seminar.
- Rental car cost including gas: $57 per day, needed for two full days.

Post-seminar, he will return to New York City.

**Question**: What are the relevant costs Derek Dingler must consider for traveling from New York City to Philadelphia?

- [ ] Airfare
- [ ] Car rental
- [ ] Uber
- [ ] One night of hotel
- [ ] One-half day of per diem
- [ ] None of these

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