Markup Is Measured Either as a Percentage of ____ or a Percentage

question 76

Multiple Choice

Markup is measured either as a percentage of ____ or a percentage of ____.

• A) selling price; cost
• B) cost; profit
• C) revenue; contribution margin
• D) resources used; cost
• E) demand; competition

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Definitions:

Salvage Value

The estimated residual value of an asset at the end of its useful life, important for calculating depreciation.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows or to evaluate the attractiveness of an investment.

Incremental Cost Approach

A decision-making process that focuses on the changes in total cost resulting from a specific business decision, considering only the relevant costs and benefits that differ between alternatives.

Operating Costs

Expenses associated with running a business's core activities on a day-to-day basis, such as salaries, rent, and utilities.