PostNews.com offers its subscribers several services, such as an annotated TV guide and local-area information on weather,

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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.

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Horngrens Cost Accounting A Managerial Emphasis

ISBN: 9780135628478

17th Edition

Authors: Srikant M. Datar, Madhav V. Rajan

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