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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.

Respuesta :

agarcia758

Answer:

d.Markup relates profit to cost while margin relates profit to selling price.

Explanation: 100% Correct

Numenius

Answer: (D) Markup relates profit to cost while margin relates profit to selling price.

Explanation:

 The markup is one of the accounting tool in which the product of the cost get increased so that it can drive the actual selling price. We can easily drive the percentage of the markup by simple calculation that are:

  Percentage of the markup= Desire margin ÷ Product cost

Markup mainly relates to the profit to the cost of the product and the margin basically related to the profit in the selling price. The margin is also refers as gross margin.

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