Asked by Sichen Zhang on May 22, 2024

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The merchandise purchases budget is the starting point for preparing the master budget of a merchandiser.

Merchandise Purchases Budget

A financial plan detailing the amount of goods a company needs to purchase during a period to meet expected sales demands and maintain inventory levels.

Master Budget

An aggregated budget that represents a company's overall plan of action for a specified period, integrating individual budgets for income, spending, and capital expenditures.

  • Gain insight into the arrangement and interconnectedness of diverse parts in a master budget.
  • Understand the contribution and value of the sales budget in impacting other financial plans.
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MW
Morgan WittemanMay 25, 2024
Final Answer :
False
Explanation :
The starting point for preparing the master budget of a merchandiser is typically the sales budget, not the merchandise purchases budget. The sales budget outlines expected sales and is used to determine the needs for the merchandise purchases budget.