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

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WebNews.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:

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The following decisions were made from June through October 2011:a. June 2011: Raised subscription fee to $25.50 per month from July 2011 onward. The budgeted number of subscribers for this monthly fee is shown in the following table.b. June 2011: Informed existing subscribers that from July onward, monthly fee would be $25.50.c. July 2011: Offered e-mail service to subscribers and upgraded other online services.d. October 2011: Dismissed the vice president of marketing after significant slowdown in subscribers and subscription revenues, based on July through September 2011 data in the following table.e. October 2011: Reduced subscription fee to $22.50 per month from November 2011 onward. Results for July???September 2011 are as follows:

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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 atWebNews.com.

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Cost Accounting A Managerial Emphasis

ISBN: 978-0132109178

14th Edition

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

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