Profit expressed in relation to cost of goods sold is

JAMB Accounting 2023 74 views

Profit expressed in relation to cost of goods sold is

  1. cost price
  2. margin
  3. mark-up ✓
  4. turnover

Explanation

Mark-up is profit calculated as a percentage of cost price. For example, if goods cost ₦100 and sell for ₦130, mark-up is ₦30/₦100 = 30%. This shows profit in relation to what you paid.

Margin calculates profit as percentage of selling price. Turnover means total sales. Cost price is just the original cost without any profit calculation.

Remember: Mark-up = profit on cost. Margin = profit on selling price. Different bases for the same profit.

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