How is the term "Per Diem" best defined?

The term "Per Diem" is best defined as a daily allowance provided to employees to cover expenses incurred while traveling for business purposes. This daily rate is intended to reimburse employees for costs such as meals, lodging, and incidental expenses without the need for them to provide receipts for each expense.

Understanding "Per Diem" within the context of its definition as "within a day" illustrates that it is calculated and allocated on a daily basis. Each day that an employee is traveling for work, a specific amount is granted to them to manage their daily expenses. This distinguishes it from other terms that might reference longer time frames like pay periods or fiscal years, or that could imply frequency such as "each occurrence." The focus on daily reimbursement helps streamline accounting and simplifies the process for both the employee and the employer.