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

Question:

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:
WebNews.co.uk is an Internet company. It offers subscribers multiple online

€¢ Banner advertising fees from companies advertising on WebNews.co.uk page sites. Recent data are:
Month / Year Advertising revenues
June 2013.......................................£400 988
December 2013.................................£833 158
June 2014.......................................£861 034
December 2014..............................£1 478 072
June 2015.....................................£2 916 962
The following decisions were made in the June to October 2015 period:
a. June 2015. Decision to raise the monthly subscription fee from £19.95 per month in June 2015 to £24.95 per month in July 2015. The £19.95 fee first applied in December 2013.
b. June 2015. Decision to inform existing subscribers that the July 2015 subscription fee would be £24.95.
c. July 2015. Decision to upgrade the content of its online services and to offer better Internet mail services.
d. October 2015. Demotion of manager of marketing after significant slowing of subscriber growth in accounts and revenues. Results include:
Month/Year Actual number Actual monthly fee
of subscribers per subscriber
July 2015.....................128 933 ......................................24.95
August 2015..................139 419.....................................£24.95
September 2015.............143 131......................................£24.95
Budgeted amounts (set in June 2015) for the number of subscribers were 140 000 for July 2015, 150 000 for August 2015, and 160 000 for September 2015.
e. October 2015. Decision to reduce the monthly subscription fee from £24.95 per month in September 2015 to £21.95 in October 2015.
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.

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

Step by Step Answer:

Related Book For  answer-question

Management and Cost Accounting

ISBN: 978-1292063461

6th edition

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

Question Posted: