amount added to the cost the retailer paid for a product to reach the final selling price is referred to as a(n)__________.
A) markup
B) markdown
C) original markup
D) maintained markup
E) cost-plus markup

Question

Quizplus · Accepted Answer

Markup refers to the amount that is added to the cost the retailer paid for a product to reach the final selling price. This is a common practice in retail and is used to cover expenses such as overhead, operating costs, and profit. Markdown refers to a reduction in the selling price of a product, while original markup refers to the initial amount added to the cost, and maintained markup refers to the markup that is maintained over time. Cost-plus markup is a pricing strategy where a percentage is added to the cost of a product to determine the selling price.

Amount Added to the Cost the Retailer Paid for a Product