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Aman: The office should pay every employee a fixed travel allowance instead of reimbursing actual fares, since sorting and checking fare receipts costs our accounts clerk two full days a month. Bina: Those two days are worth far less than what we would lose. Under a fixed allowance the people who live close by would draw money they never spend, and the office's travel bill would go up. Which of the following is the point at issue between them?

Competition practiceLogical / Critical
  • AWhether checking fare receipts takes the accounts clerk two days a month
  • BWhether employees who live close to the office travel to work at all
  • CWhether the office should meet its employees' travel costs at all
  • DWhether replacing reimbursement with a fixed allowance would leave the office better off on the whole

Step-by-Step Solution

Bina accepts Aman's two days without argument and answers that they are outweighed by a larger travel bill, so the two are weighing the same change on a single balance and reaching opposite totals. Neither disputes the clerk's two days, neither says nearby employees do not travel, and both take it for granted that travel costs are to be met in some form.
Answer: D) Whether replacing reimbursement with a fixed allowance would leave the office better off on the whole

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