The given statement is True since a merchandising company's financial budget is similar to a manufacturing company's.
A merchandising company's financial plan contains cash and capital expenditure budgets. It is divided into three parts: cash receipts, cash payments, and short-term financing, just like the cash budget of a manufacturing company. A manufacturing firm, like a retail company, converts raw materials into finished products using labor and other inputs before selling the products.
A service firm, on the other hand, offers services rather than producing or selling items. The budget for buying goods is analogous to the budget for making things. Both units and total money may be used to create the budget for purchases. The cost of inventory sales is often calculated using the procurement budget, which is usually expressed in dollars and uses a cost of goods sold percentage.
Learn to know more about Budgeting on
https://brainly.com/question/24940564
#SPJ4
