Answer to Question #54566 in Economics for wilson phan

Question

Suppose several additional junior staff are employed in subsequent years after a new business is established. The owner notices a large increase in the motor vehicle expense account. What changes to assumptions or controls would you recommend?

Answer 1

If several additional junior staff are employed in subsequent years after a new business is established and the owner notices a large increase in the motor vehicle expense account, then I would recommend such changes to assumptions or controls, that will regulate the use of motor vehicles and require the junior staff to use their motor vehicles not so often and only when there is a real need.