Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 9 - No. 13)

What is the primary difference between mark-up and margin?

Mark-up is based on sales revenue, while margin is based on cost of sales.

Mark-up is based on cost of sales, while margin is based on sales revenue.

They are the same thing.

Margin is always higher than mark-up.

Mark-up is the percentage applied to the cost of goods to determine selling price, whereas margin is based on sales revenue.