The format of the merchant's purchases budget is very similar to the format of the manufacturer's:

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The merchant's purchases budget is similar to the manufacturer's production budget because it also involves forecasting the amount of inventory needed to meet demand and the related cost of goods sold. Both budgets also consider factors such as lead times, inventory turnover, and desired inventory levels. The direct labor budget and manufacturing overhead budget are more specific to the manufacturer's process and do not apply to the merchant's purchases budget. The sales budget is related to both the merchant's and manufacturer's budgets but is not the best choice as the format is not as similar.

The Format of the Merchant's Purchases Budget Is Very Similar