Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 14 - No. 34)
What is the main difference between mark-up and gross profit margin?
Mark-up is based on sales price, while gross profit margin is based on cost.
Mark-up is based on cost price, while gross profit margin is based on sales price.
They are different ways to calculate the same value.
Mark-up is always higher than gross profit margin.
Explanation
Mark-up is the percentage added to the cost, while gross profit margin is the profit expressed as a percentage of sales price.
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