PostNews.com offers its subscribers several services, such as an annotated TV guide and local-area information on weather,
Question:
PostNews.com offers its subscribers several services, such as an annotated TV guide and local-area information on weather, restaurants, and movie theaters. Its main revenue sources are fees for banner advertisements and fees from subscribers. Recent data are as follows:
The following decisions were made from June through October 2020:
a. June 2020: Raised subscription fee to $25.50 per month from July 2020 onward. The budgeted number of subscribers for this monthly fee is shown in the following table.
b. June 2020: Informed existing subscribers that from July onward, monthly fee would be $25.50.
c. July 2020: Offered e-mail service to subscribers and upgraded other online services.
d. October 2020: Dismissed the vice president of marketing after significant slowdown in subscribers and subscription revenues, based on July through September 2020 data in the following table.
e. October 2020: Reduced subscription fee to $22.50 per month from November 2020 onward.
Results for July–September 2020 are as follows:
Required
1. Classify each of the decisions (a-e) as a planning or a control decision.
2. Give two examples of other planning decisions and two examples of other control decisions that may be made at PostNews.com.
Step by Step Answer:
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 9780135628478
17th Edition
Authors: Srikant M. Datar, Madhav V. Rajan