Marking time
2 April 2012
Sorting out the confusion between mark-up and margin
When tackling incomplete records questions, students often find mark-up and margin confusing. Both express gross profit, but relate to different sets of figures.
Mark-up expresses gross profit as a percentage of cost of sales (whatever it costs to make or buy an item is "marked up" to its selling price). Margin expresses gross profit as a percentage of sales (...