Ethics and Travel Reimbursement LO5 Jake takes many business trips throughout the year. All of his expenses are paid by his company. Last week he traveled to Rio De Janeiro, Brazil, and stayed there on business for five days. He is allowed a maximum of \($50\) per day for food and \($150\) per day for lodging. To his surprise, the food and accommodations in Brazil were much less than he expected. Being upset about traveling last week and having to sacrifice tickets he’d purchased to a Cubs baseball game, he decided to inflate his expenses a bit. He increased his lodging expense from \($80\) per day to \($100\) per day and his food purchased from \($30\) per

~ day to \($40\) per day. Therefore, for the five-day trip, he overstated his expenses by \($150\) total. After all, the allowance was higher than the amount he spent.

Required Assume that the company would never find out that he had actually spent less. Are Jake’s actions ethical? Are they acceptable?