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:

image text in transcribed

The following decisions were made from June through October 2017:

a. June 2017: Raised subscription fee to $25.50 per month from July 2017 onward. The budgeted number of subscribers for this monthly fee is shown in the following table.

b. June 2017: Informed existing subscribers that from July onward, monthly fee would be $25.50.

c. July 2017: Offered e-mail service to subscribers and upgraded other online services.

d. October 2017: Dismissed the vice president of marketing after significant slowdown in subscribers and subscription revenues, based on July through September 2017 data in the following table.

e. October 2017: Reduced subscription fee to $22.50 per month from November 2017 onward.
Results for July–September 2017 are as follows:

image text in transcribed

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.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Horngrens Cost Accounting A Managerial Emphasis

ISBN: 9781292211541

16th Global Edition

Authors: Srikant Datar, Madhav Rajan

Question Posted: