Question

Which of the following statements best describes the difference between markup and margin?
a.
Markup is a term used to describe profit while margin is a term used to describe loss.
b.
Markup is a term used to describe loss while margin is a term used to describe profit.
c.
Markup relates profit to selling price while margin relates profit to cost.
d.
Markup relates profit to cost while margin relates profit to selling price.


Please select the best answer from the choices provided

A
B
C
D

Answer 1

D

Markup = (Selling Price − Cost) / Cost (profit relative to cost).
Margin = (Selling Price − Cost) / Selling Price (profit relative to selling price).