A record company is planning to launch an Internet music service. Subscribers who pay \(£ 15\) per month will be allowed to download 100 songs per month to a personal computer. If the subscription lapses, access to the music will be lost. The quality of the file transfer is guaranteed to be high. Legal advice has been obtained to confirm that the arrangement is within copyright regulations. Royalties will be paid to recording artists based on the number of times that a song is requested.

(a) Identify the judgements and decisions to be made here.

(b) Explain how management accounting may help in directing attention, keeping the score or solving problems.