Markup Refers to

question 156

Multiple Choice

Markup refers to

• A) the difference between the final selling price and how the customer values the product.
• B) selling brand name merchandise at lower than regular prices.
• C) the amount added to the cost the retailer paid for a product to reach the final selling price.
• D) the difference between the retail cost and initial selling price.
• E) the reduction in retail price, usually expressed as a percentage equal to the amount reduced, divided by the original price, and then multiplied by

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Definitions:

Tangible Assets

Physical assets that can be seen and touched, such as buildings, machinery, and inventory.

Long-term Assets

Assets owned by a company meant to provide value for more than one year, such as real estate, machinery, or patents.

Current Assets

Resources that are anticipated to be turned into cash, sold, or utilized within a year or during the standard operational cycle of a company.

Goodwill

An intangible asset that represents the value of a company's brand name, solid customer base, good customer relations, good employee relations, and any patents or proprietary technology.