The MERGE statement is a very powerful way to combine INSERT, UPDATE and/or DELETE in a single statement. But there’s more than meets the eye. There are situations where you could use a MERGE statement to perform just one of those tasks.
The OUTPUT clause allows you to combine DML statements with a kind of SELECT statement on the rows affected by the DML operation. This is a powerful way to visualize what records were touched by your statement, or an easy way to build an auditing mechanism.