Gross margin rate, mark-up, and cost percentage, are different names for the same relationship.

Question

Quizplus · Accepted Answer

Gross margin rate is the percentage of a product's sale price that represents profit. Mark-up is the amount added to the product's cost to get the sale price. Cost percentage is the percentage of the sale price that represents the cost of the product. While they are related, they represent different aspects of the pricing and profitability of a product.

Gross Margin Rate, Mark-Up, and Cost Percentage, Are Different Names