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production manager you invite three friends to a restaurant when the dinner check ar 640918

Production Manager You invite three friends to a restaurant. When the dinner check arrives, David, a self employed entrepreneur, picks it up saying, “Here, let me pay. I’ll deduct it as a business expense on my tax return.” Denise, a salesperson, takes the check from David’s hand and says, “I’ll put this on my company’s credit card. It won’t cost us anything.” Derek, a factory manager for a company, laughs and says, “Neither of you understands. I’ll put this on my company’s credit card and call it overhead on a cost plus contract my company has with a client.” (A cost plus contract means the company receives its costs plus a percent of those costs.) Adds Derek, “That way, my company pays for dinner and makes a profit.” Who should pay the bill? Why?

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