Which item is typically excluded when preparing a merchandising budget?

In preparing a merchandising budget, the focus is on the elements that directly relate to the buying and selling of inventory. Typically, the budget will include important components such as budgeted sales, cost of goods sold, and inventory purchases, as these items directly influence the financial performance of the merchandising operations.

Human resources costs, while essential for overall business operations, are generally not included in a merchandising budget. This budget specifically prioritizes the direct costs associated with purchasing and selling products rather than operational costs like salaries, benefits, and other expenses related to personnel. By excluding human resources costs, the merchandising budget can concentrate on the factors that directly affect merchandise sales and inventory management, aiding in making informed decisions about pricing, stocking levels, and expected profitability from merchandise sales.