EBK HORNGREN'S COST ACCOUNTING
EBK HORNGREN'S COST ACCOUNTING
16th Edition
ISBN: 9780134475998
Author: Rajan
Publisher: YUZU
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Chapter 1, Problem 1.28P

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:

Chapter 1, Problem 1.28P, Planning and control decisions, Internet company. PostNews.com offers its subscribers several , example  1

The following decisions were made from June through October 2017:

  1. 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.
  2. b. June 2017: Informed existing subscribers that from July onward, monthly fee would be $25.50.
  3. c. July 2017: Offered e-mail service to subscribers and upgraded other online services.
  4. 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.
  5. e. October 2017: Reduced subscription fee to $22.50 per month from November 2017 onward.

Results for July-September 2017 are as follows:

Chapter 1, Problem 1.28P, Planning and control decisions, Internet company. PostNews.com offers its subscribers several , example  2

  1. 1. Classify each of the decisions (a–e) as a planning or a control decision.

Required

  1. 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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EBK HORNGREN'S COST ACCOUNTING

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