Merchandise Purchases Budget Definition
Merchandise Purchases Budget Definition:
Merchandise purchase budget is a budget used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period.
Merchandise Purchase Budget Formula or Equation:
Merchandise to be purchased = Budgeted units to be sold + Desired ending inventory – Units in hand
Also read inventory purchases budget for a merchandising firm article
Other Related Accounting Articles:
- Ending Finished Goods Inventory Budget Definition
- Periodic Inventory System Definition
- Production Budget Definition
- Equivalent Units of Production
- Just in Time (JIT) Definition
- Flexible Budget Definition
- Flexible Budget Definition
- Impact of Just In Time (JIT) Inventory Methods on Variable and Absorption Costing System
- Cost Accounting Procedure for Defective Work
- Finished Goods Definition
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