We can use output clause with a  table variable , temporary table or a permanent table.  Some examples are given below:

OUTPUT clause with INSERT statement

--------Creating the primary table which will store data
 
CREATE TABLE TestTable (ID INT, FIRSTNAME VARCHAR(100))
 
----Declaring a TABLE VARIABLE to store values of OUTPUT clause
 
DECLARE @TmpTable TABLE (ID INT,FIRSTNAME VARCHAR(100))
----Insert values in real table as well use OUTPUT clause to insert
 
----values in the table variable.
 
INSERT TestTable (ID, FIRSTNAME)
OUTPUT Inserted.ID, Inserted.FIRSTNAME INTO @TmpTable
VALUES (1,'FirstVal')
 
 
-----OUTPUT clause into Table with UPDATE statement
 
--------Creating the primary table which will store data
 
CREATE TABLE TestTable5 (ID INT, FIRSTNAME VARCHAR(100 ))
 
----Declaring a TABLE VARIABLE to store values of OUTPUT clause
 
DECLARE @TmpTable TABLE (ID_New INT, FirstName_New VARCHAR(100),ID_Old INT, FirstName_Old VARCHAR(100 ))
 
----Insert values in real table as well use OUTPUT clause to insert
----values in the table variable.
 
INSERT
TestTable5 (ID, FIRSTNAME
)
VALUES
(1,'Ari'
)
INSERT
TestTable5 (ID, FIRSTNAME
)
VALUES
(2,'Ari1'
)

----Update the table and insert values in table variable using Output clause

UPDATE
TestTable5
SET
FIRSTNAME =
'Ari3'
OUTPUT
Inserted.ID, Inserted.FIRSTNAME, Deleted.ID, Deleted.FIRSTNAME INTO
@TmpTable
WHERE
ID IN (1,2)

-----OUTPUT clause into Table with DELETE statement
 
----Creating the table which will store permanent table
 
CREATE TABLE TestTable6 (ID INT, FIRSTNAME VARCHAR(100))
 
----Creating temp table to store values of OUTPUT clause
 
DECLARE @TmpTable TABLE (ID INT, LASTNAME VARCHAR(100))
 
----Insert values in real table
 
INSERT TestTable6 (ID, FIRSTNAME)
VALUES (1,'Ari1')
INSERT TestTable6 (ID, FIRSTNAME)
VALUES (2,'Ari2')
 
----Update the table and insert values in table variable using Output clause

DELETE
FROM TestTable6
OUTPUT Deleted.ID, Deleted.FIRSTNAME INTO @TmpTable
WHERE ID IN (1,2)