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Tidbit Inc. has a sales budget for next month of $800,000. Cost of goods sold is expected to be 25 percent of sales. All goods are purchased in the month used and paid for in the month following purchase. The beginning inventory of merchandise is $16,000, and an ending inventory of $28,000 is desired. Beginning accounts payable is $76,000. What will be the ending accounts payable balance for Tidbit Inc?
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What factors can cause costs to change? Which of these factors are subject to cost containment and which are not? What creates the difference in controllability?
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