All of the following are true about markup EXCEPT that it is:
A) based on a product's selling price or cost.
B) intended to allow wholesalers to profit.
C) usually expressed as a percentage.
D) representative of gross profit.
E) representative of net profit.

Question

Quizplus · Accepted Answer

Markup is related to gross profit, which is the difference between the sales revenue and the cost of goods sold, not net profit, which also accounts for operating expenses, taxes, interest, and other factors.

All of the Following Are True About Markup EXCEPT That