Concept explainers
Planning and control decisions, Internet company. 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:
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:
- 1. Classify each of the decisions (a–e) as a planning or a control decision.
Required
- 2. Give two examples of other planning decisions and two examples of other control decisions that may be made at PostNews.com.
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Check out a sample textbook solutionChapter 1 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Additional Business Textbook Solutions
Managerial Accounting (5th Edition)
Accounting for Governmental & Nonprofit Entities
Financial Accounting: Information for Decisions
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
Principles of Accounting Volume 2
Cost Accounting (15th Edition)
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