Why might the grants-in-aid expenses in the athletic department financial statement overstate the actual expenditures?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 2.6CE
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Why might the grants-in-aid expenses in the athletic department financial statement overstate the actual expenditures?

a. The actual marginal cost of an athlete to the university may be less than the amount of his or her scholarship
b. The NCAA requires schools to use out-of-state tuition as the proxy for the cost of an education, which inflates the reported expense
c. Athletic directors have been known to inflate these figures as a way to extract larger subsidies from the university
d. Most schools combine the scholarship expenses of both athletes and nonathletes
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