When the New York Times Switched to an Online-Paid Access

question 208

Multiple Choice

When the New York Times switched to an online-paid access model for reading articles on their website,they initially felt that customers would pay $45.00 a month for unlimited access.From here,they worked backwards to ensure they were going to be profitable after paying all of the necessary IT,reporters,and administrative costs.The New York Times engaged in:

• A)Penetration pricing
• B)Target pricing
• C)Cost-plus and percentage-of-cost pricing
• D)Cost-plus and fixed fee pricing

Assess the financial performance using flexible budgeting.

Distinguish between spending and activity variances.

Evaluate employee wages and salaries management in budgeting.

Grasp the concept of planning budget and its importance in financial forecasting.

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Definitions:

Years

Units of time equal to 365 days (or 366 in a leap year), used as a measure of time duration or age.

Compounded Quarterly

Refers to the process of calculating and adding interest to the principal sum every quarter of a year.

Mortgage

A loan used to purchase a piece of property, where the property itself serves as collateral until the loan is repaid.

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.