Markup percentages are usually expressed in terms of an item's selling price, not its cost, because
A) profitability appears higher.
B) trade discounts are generally stated as percentages of costs.
C) selling prices to channel members represent those channel members' costs.
D) expenses, markdowns, and profits are computed as percentages of sales.

Question

Quizplus · Accepted Answer

Expenses, markdowns, and profits are typically calculated as percentages of sales, making it more practical to express markup percentages in terms of an item's selling price. This approach aligns with how businesses track their financial performance.

Markup Percentages Are Usually Expressed in Terms of an Item's