WebNews.co.uk is an Internet company. It offers subscribers multiple online services ranging from an annotated TV guide

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WebNews.co.uk is an Internet company. It offers subscribers multiple online services ranging from an annotated TV guide to local-area information on restaurants and cinemas. It has two main revenue sources: Monthly fees from subscribers. Recent data are:

Banner advertising fees from companies advertising on WebNews.co.uk page sites. Recent data are:


The following decisions were made in the June to October 2018 period:

a. June 2018. Decision to raise the monthly subscription fee from £19.95 per month in June 2018 to £24.95 per month in July 2018. The £19.95 fee first applied in December 2017.

b. June 2018. Decision to inform existing subscribers that the July 2018 subscription fee would be £24.95.

c. July 2018. Decision to upgrade the content of its online services and to offer better Internet mail services.

d. October 2018. Demotion of manager of marketing after significant slowing of subscriber growth in accounts and revenues. Results include:

Budgeted amounts (set in June 2018) for the number of subscribers were 140,000 for July 2018, 150,000 for August 2018, and 160,000 for September 2018.

e. October 2018. Decision to reduce the monthly subscription fee from £24.95 per month in September 2018 to £21.95 in October 2018.


Required
1. Distinguish between planning decisions and control decisions at WebNews.co.uk.
2. Classify each of the decisions a–e as a planning or a control decision.

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Management And Cost Accounting

ISBN: 9781292232669

7th Edition

Authors: Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan

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