What term is used to describe the amount added to cost to determine selling price, sometimes expressed as a dollar amount?

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Multiple Choice

What term is used to describe the amount added to cost to determine selling price, sometimes expressed as a dollar amount?

Explanation:
Markup is the amount added to cost to determine the selling price, and it can be shown as a dollar amount or as a percentage of cost. For example, if an item costs $180 and you add a $40 markup, the selling price becomes $220. If you express the markup as a percentage, a 22% markup on a $180 cost also yields $220. Margin is the gross profit as a percentage of the selling price, not the amount added to cost. Retail price refers to the final selling price itself, which comes from applying the markup. Net price usually means the price after deductions or discounts. So the term that describes the amount added to cost to set the selling price is markup.

Markup is the amount added to cost to determine the selling price, and it can be shown as a dollar amount or as a percentage of cost. For example, if an item costs $180 and you add a $40 markup, the selling price becomes $220. If you express the markup as a percentage, a 22% markup on a $180 cost also yields $220. Margin is the gross profit as a percentage of the selling price, not the amount added to cost. Retail price refers to the final selling price itself, which comes from applying the markup. Net price usually means the price after deductions or discounts. So the term that describes the amount added to cost to set the selling price is markup.

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