EBK HORNGREN'S COST ACCOUNTING
16th Edition
ISBN: 8220103631723
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:
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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The following additional information was also provided to assist your work.i) Depreciation is provided at the rate of 5% on cost of non-current assets per month.ii) Closing inventory is expected to increase by RM2000 in January from December…
BioGrow Sdn. Bhd is a retail fertilizer to farmers in Jitra. The company has approached its Bankers to provide funding for next year’s operations. In considering their funding application, a three - month master budget has been requested for review by the bankers.
As a freelance accounting service provider, you have been approached by the management as a consultant to prepare the 1st quarter budget for the banker’s consideration for its next year’s (2021) operations.
Below is the information as at the end of accounting year of December 2020:
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23,000
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55,000
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Creditors
48,000
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The following additional information was also provided to assist your work.
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Chapter 1 Solutions
EBK HORNGREN'S COST ACCOUNTING
Ch. 1 - How does management accounting differ from...Ch. 1 - Management accounting should not fit the...Ch. 1 - How can a management accountant help formulate...Ch. 1 - Describe the business functions in the value...Ch. 1 - Explain the term supply chain and its importance...Ch. 1 - Management accounting deals only with costs. Do...Ch. 1 - How can management accountants help improve...Ch. 1 - Prob. 1.8QCh. 1 - Prob. 1.9QCh. 1 - What three guidelines help management accountants...
Ch. 1 - Prob. 1.11QCh. 1 - Prob. 1.12QCh. 1 - Prob. 1.13QCh. 1 - Prob. 1.14QCh. 1 - Prob. 1.15QCh. 1 - Which of the following is not a primary function...Ch. 1 - Value chain and classification of costs, computer...Ch. 1 - Prob. 1.18ECh. 1 - Value chain and classification of costs, fast-food...Ch. 1 - Key success factors. Dominion Consulting has...Ch. 1 - Key success factors. Vargas Construction Company...Ch. 1 - Planning and control decisions. Gregor Company...Ch. 1 - Planning and control decisions. Gavin Adams is the...Ch. 1 - Prob. 1.24ECh. 1 - Five-step decision-making process, service firm....Ch. 1 - Professional ethics and reporting division...Ch. 1 - Professional ethics and reporting division...Ch. 1 - Planning and control decisions, Internet company....Ch. 1 - Prob. 1.29PCh. 1 - Prob. 1.30PCh. 1 - Management accounting guidelines. For each of the...Ch. 1 - Prob. 1.32PCh. 1 - Prob. 1.33PCh. 1 - Budgeting, ethics, pharmaceutical company. Chris...Ch. 1 - Professional ethics and end-of-year actions. Linda...Ch. 1 - Professional ethics and end-of-year actions....Ch. 1 - Ethical challenges, global company environmental...
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