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What is the difference between Margin and Markup? Lets suppose Sale is AED 500 Cost is AED 460 Calculate Margin and Mark up . Rate is 25 Percent.

Accounting
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Question added by Muhammad Fiaz , GROUP MANAGER ACCOUNTS, FINANCE AND TAX , SMPL Group of Companies
Date Posted: 2014/05/20
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Rehan Zia
by Rehan Zia , Group Manager Finance , Anker Management Logistics & Services LLC

Markup is based on cost, while margin is on sales. In the example above, the gross profit of40 can be narrated as markup on cost of8.7% or margin on sales of8%.

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