What are expenses like meals and transportation categorized as when billed to a client in travel situations?

Travel expenses include costs incurred while conducting business away from the usual place of work, encompassing specific items such as meals and transportation. When billed to a client in the context of travel, these expenses are considered travel expenses because they directly relate to the travel activities associated with the project. This allows for clear communication and transparency regarding costs that the client is expected to cover, and reflects the necessary expenditures that support the completion of design services.

Overhead costs refer to general business expenses not directly tied to a specific project or client. While incidental expenses are minor costs that might arise during a project, they don’t specifically capture the nature of travel-related costs. Direct costs typically refer to expenses that can be directly attributed to a project, but in travel contexts, the term travel expenses is more precise and widely recognized for categorizing meals and transportation incurred while traveling for work.